US CFTC Issues 24/7 Trading Regulatory Guidance: Crypto Derivatives More Suited for Around-the-Clock Trading

Odaily reported that the U.S. Commodity Futures Trading Commission (CFTC) departments, including Market Oversight, Clearing and Risk, jointly issued staff guidance outlining regulatory expectations and compliance requirements for the growing 24/7 trading, clearing, and settlement model in the markets, encouraging market innovation while ensuring compliance.

The guidance emphasizes that regulated trading platforms, swap execution facilities, derivatives clearing organizations, and futures commission merchants must comply with the Commodity Exchange Act (CEA) and relevant regulatory rules when expanding to 24/7 trading, and must proactively assess risk management and operational arrangements.

The CFTC noted that different asset classes have varying suitability for 24/7 trading. Derivatives related to crypto assets, due to their digital infrastructure and global continuous trading characteristics, are more suitable for around-the-clock trading and clearing. In contrast, traditional commodity derivatives such as agricultural products, due to their regional and trading structure characteristics, may not be fully suited for 24/7 operations.

CFTC staff stated that relevant institutions should ensure they meet the regulatory framework and risk control requirements while promoting continuous market evolution, in order to support "responsible market innovation."