‘Could worsen volatility’ – Why CFTC might block CME’s 24/7 oil contract plans

U.S Commodity Futures Trading Commission (CFTC) is reportedly mulling stopping the Chicago Mercantile Exchange (CME) 24/7 oil futures trading plan. 

According to a Bloomberg report, the agency is concerned that the CME’s plans could worsen oil price volatility. It said, “Round-the-clock trading may not be suitable for crude oil because it could worsen already extreme volatility during periods of geopolitical stress.”

The report added that the CME’s 24/7 oil futures contract, announced by the exchange on Thursday, caught the agency by surprise. It also claimed,  

Those concerns may justify withholding approval for the contract.

Will CME lose to Hyperliquid?

The derivatives giant plans to launch the oil futures contract by the end of August, subject to regulatory approval. The contract, dubbed the 10-Barrel WTI Crude Oil contract, would be a smaller version of its WTI Micro futures contract. 

The CME has also planned a gold futures contract. 

According to Derek Sammann, CME Group’s Senior Managing Director and Global Head of Commodities Markets, the move is aimed at allowing traders to hedge appropriately. 

Traders are increasingly looking to diversify their portfolios across commodity markets in the face of geopolitical uncertainty.

He added, 

Our new WTI and Gold futures provide regulated products that are right-sized and available 24/7, ensuring traders can manage exposure whenever news breaks.

Here, it’s worth pointing out that the CME has begun an aggressive push for round-the-clock trading. It recently unveiled 24/7 trading for crypto futures. The oil and gold futures contract is part of the expansion plan amid increasing competition from crypto native and cross-asset trading platform Hyperliquid. 

In early 2026, as the West Asian crisis intensified, Hyperliquid became the de facto platform for price discovery for oil and gold. Especially during the weekends when the rest of the traditional platforms remained closed.

The 24/7 oil trading plain is likely aimed at rivaling Hyperliquid’s increasing moat. 

In fact, CME and NYSE parent firm recently pressed the CFTC to regulate Hyperliquid for alleged market manipulation, given its role as a key price discovery platform. However, Hyperliquid dismissed the claims as “unfounded.”

For his part, Bloomberg analyst Larry Tabb questioned why the CFTC can approve 24/7 perps, but may be weighing blocking CME’s similar plans. 

So wait, the CFTC is upset with CMEGroup with real economically important contracts going 24×5 or 7, but perps can go 24×7, and betting on the Knicks 24×7 is economically important. Something isn’t right here.

It remains to be seen whether the agency will go ahead with plans and if it will reinforce Hyperliquid’s dominance. 

Final Summary

• The CFTC is reportedly weighing blocking CME’s round-the-clock oil futures contract plans.
• CME believes the product could help traders hedge against geopolitical uncertainty.