CME Group wanted to bring oil futures into the always-on era. The CFTC said not so fast.
The Commodity Futures Trading Commission is blocking the oil component of CME’s ambitious plan to offer round-the-clock trading in smaller-sized WTI crude oil and gold futures contracts. The regulator’s concern boils down to a familiar worry: volatility during the hours when most traders are asleep.
What CME proposed and why it matters
CME Group announced on June 11 a plan to launch 24/7 trading for two new contracts: a 10-barrel WTI crude oil future and a smaller gold future. Both were slated for an August 30 launch, pending regulatory approval.
The new oil contract would be one-tenth the size of CME’s existing Micro WTI futures. In English: this is a contract designed for retail traders and smaller institutions who want crude oil exposure without the capital requirements of a standard 1,000-barrel contract.
