Lates News

The Commodity Futures Trading Commission (CFTC) plans to block the Chicago Mercantile Exchange (CME) from quickly listing a 24x7 oil contract due to concerns that the energy market is not ready to handle the influx of a large number of around-the-clock derivative contracts. In June, CME announced plans to provide around-the-clock trading for a futures contract linked to WTI crude oil, traded in units of 10 barrels, citing investor desire to manage their positions "at any news release." On Wednesday, CME submitted a self-certification application for this new product, giving the CFTC only one day to intervene before the contract can be listed for trading. According to sources, the CFTC plans to block CME's self-certification. CFTC Chairman Michael Selig has met with executives from energy companies such as Shell, Total, BP, and ExxonMobil in recent weeks. Another application for the same product submitted by CME (which requires a 45-day review period) is still under regulatory scrutiny.