CFTC to Stay Listing of CME Contract Allowing 24/7 Trading on Crude Oil Futures

The Commodity Futures Trading Commission (CFTC) announced it will exercise its authority to stay the listing of a contract that would have allowed Chicago Mercantile Exchange to initiate 24/7 trading on crude oil futures.On June 22, the Commission issued a request for public comment on the propriety of extending standard futures contracts, including crude oil, to 24/7 trading.Despite an ongoing public comment period and known regulatory risks, CME sought to self-certify such a contract on July 8.The Commission said it will exercise its authority under 17 C.F.R. 40.2(c) to stay this contract."The CFTC is examining whether 24/7 trading of futures contracts on various asset classes is consistent with our statutory Core Principles," said Chairman Michael S. Selig."CME's decision to disregard the Commission's effort to undertake a reasoned analysis is wholly inappropriate and necessitates Commission action to stay the certification."The CFTC's regulations offer exchanges two methods to list contracts: self-certification under rule 40.2 or seeking Commission review under rule 40.3.CME made simultaneous filings under both provisions, and the Commission will conduct a thorough review under its 40.3 authority.By staying the 40.2 filing, the Commission will bar CME from listing such contracts before determining their compliance with the Commodity Exchange Act.