CFTC Blocks CME's 24/7 Crude Oil Futures on July 9, One Day Before Launch

According to the Commodity Futures Trading Commission, on July 9, CFTC issued a stay blocking CME's 24/7 crude oil futures contract scheduled to launch on July 10. The agency said CME filed to self-certify the contract on July 8 despite an active public comment process opened by CFTC on June 22 seeking input on whether standard futures contracts should be extended to 24/7 trading, including crude oil. The Federal Register notice set a July 27 comment deadline.

CFTC Chairman Michael S. Selig stated: "CME's decision to disregard the Commission's effort to undertake a reasoned analysis of the critical issues at stake is wholly inappropriate." By staying CME's self-certification filing, CFTC is preventing the contract launch and will conduct a full regulatory review to determine whether the product complies with the Commodity Exchange Act and CFTC rules.