CME Shelves Plan for 24/7 WTI Crude Futures Contract
The proposed contract was one-tenth the size of CME’s Micro WTI futures. Concerns included weekend liquidity, commercial hedging and after-hours margin calls.
CME Group shelved a plan for a West Texas Intermediate crude futures contract that would trade around the clock, following industry concerns about risks to energy markets from continuous trading.
The proposed contract was one-tenth the size of CME’s Micro WTI futures. CME had planned the U.S.-regulated product amid competition from similar offerings on offshore trading platforms.
Market participants raised concerns that thin weekend liquidity could distort prices and affect WTI’s role as a key oil benchmark. Industry representatives also pointed to weekend staffing demands, more complex commercial hedging and the risk of margin calls outside regular business hours.
The Commodity Futures Trading Commission began an impact review of the proposed trading schedule. CME’s decision puts the launch plan on hold.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.