CFTC Releases 24/7 Trading Guidance; Crypto Derivatives Better Suited for Round-the-Clock Markets

According to the U.S. Commodity Futures Trading Commission (CFTC), the agency's staff released guidance on 24/7 trading, clearing and settlement models, establishing compliance requirements for exchanges, swap execution facilities, derivatives clearing organizations and futures commission merchants expanding into round-the-clock operations. The guidance emphasizes compliance with the Commodity Exchange Act and related rules, alongside proactive risk assessment. CFTC noted that crypto-related derivatives, with their digital infrastructure and continuous global trading characteristics, are better suited for 24/7 trading and clearing compared to traditional commodities like agricultural products, which face geographic and structural constraints.
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