U.S. regulators are considering blocking CME's proposal for the rapid launch of an all-weather oil contract.

The Commodity Futures Trading Commission of the United States plans to block the Chicago Mercantile Exchange's application to quickly list all-weather oil contracts, citing concerns that the energy market is not ready to handle a flood of all-weather derivative contracts. In June, CME announced plans to offer all-weather trading for a futures contract tied to WTI crude oil in units of 10 barrels, stating that investors want to manage their positions "at any time news breaks." On Wednesday, CME submitted a self-certification application for the new product, giving the CFTC only one day to intervene before the contract can be listed for trading. According to sources familiar with the matter, the CFTC plans to block CME's self-certification. CFTC Chairman Michael Selig has met with executives from energy companies such as Shell, Vitol, BP, and ExxonMobil in recent weeks. Another application for the same product submitted by CME is still under review by regulators.