The U.S. Commodity Futures Trading Commission is asking for public feedback on a potential shift to around-the-clock trading for energy derivatives, as well as the introduction of perpetual contracts in that market. The move, announced this week, could fundamentally alter how energy futures and options are traded — but the agency says it wants to hear from the industry before making any decisions.
What the CFTC is proposing
The CFTC's request for comment covers two main ideas. First, moving energy derivative trading to a 24/7 schedule, a break from the current model where most trading happens during regular business hours. Second, allowing perpetual contracts — derivatives with no expiration date — which are already common in crypto markets but rare in regulated U.S. energy trading.
The agency is not proposing specific rules yet. Instead, it's gathering information on potential benefits and risks. Questions include how 24/7 trading might affect market liquidity, risk management, and the ability of regulators to monitor activity around the clock.
Why perpetual contracts are a new idea in energy
Perpetual contracts let traders hold positions indefinitely without rolling over expiring contracts. That's a feature of some digital asset exchanges, but U.S. energy markets have largely avoided them. The CFTC wants to know whether that model could work for crude oil, natural gas, and other commodities — and what safeguards might be needed.
The agency also notes that perpetual contracts can carry higher leverage and unique settlement mechanisms. Critics say they could introduce new risks, while supporters argue they could attract more market participants and increase efficiency.
Energy derivatives are a cornerstone of global commodity trading. The CFTC's exploration of 24/7 trading comes as other markets — like equities and cryptocurrencies — already operate nearly around the clock. The agency has not signaled any timeline for a formal proposal. For now, it's relying on public comments to shape any future rulemaking.
The request for input is part of a broader effort by the CFTC to modernize its oversight. The agency has recently focused on digital assets and climate-related risk, but this move targets the core of traditional energy markets.
Market participants, exchanges, and end-users are all being asked to weigh in. The CFTC has not set a specific deadline for comments, but they can be submitted through the agency's website.
