Derivatives of energy products embrace the "round-the-clock era?" CFTC initiates solicitation of opinions, traditional exchanges and offshore crypto platforms compete and escalate.

Notice that the Commodity Futures Trading Commission (CFTC) has publicly solicited opinions on perpetual contracts and 24/7 trading of traditional energy derivatives after industry leaders expressed concerns about offshore platforms and excessive risks. Chairman Michael Selig stated in a statement on Monday, "As registered entities extend trading hours and introduce new contract designs, a clear, data-driven record will help the Commission better understand the implications and impacts of these developments in the market." The agency pointed out that, given the growing volume of so-called "perpetual contracts" (derivatives contracts without a fixed expiry date), these two matters, while distinct, are related to each other. Some institutional traders like these products because they find them easier to maintain without rolling over to new contracts. But as more companies seek to expand these products (which may include leveraged trading), critics worry that they may become more attractive to retail traders. CFTC recently approved Kalshi to launch bitcoin perpetual futures contracts, while noting that perpetual contracts linked to other types of assets (including energy and Shenzhen Agricultural Power Group) will be subject to separate review. The agency specifically solicited comments on perpetual energy contracts that can be traded 24/7, including trades conducted at night and on holidays or weekends when traditional exchanges are closed. The Chicago Mercantile Exchange and Intercontinental Exchange have recently expressed concerns about energy perpetual contracts traded on the offshore platform Hyperliquid, fearing it may affect their own exchange's pricing. These industry giants have been pushing Hyperliquid to register with the agency. After regulators allowed Kalshi to trade cryptocurrency perpetual contracts last week, the Chicago Mercantile Exchange filed a lawsuit against CFTC. The derivatives exchange claims that the agency disregarded its legal charter by allowing such products to be classified as futures rather than more complex swaps.