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

Odaily Odaily reports that the Market Oversight, Clearing, and Risk departments of the U.S. Commodity Futures Trading Commission (CFTC) have jointly issued staff guidance, outlining regulatory expectations and compliance requirements for the growing 24/7 trading, clearing, and settlement model, 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 around-the-clock trading operations, and must proactively assess risk management and operational arrangements.

The CFTC noted that the suitability for 24/7 trading varies across different asset classes. Derivatives related to crypto assets, due to their digital infrastructure and global continuous trading characteristics, are more suited for 24/7 trading and clearing. In contrast, traditional commodity derivatives such as agricultural products may be less suitable for fully continuous 24/7 operations, given their regional and structural trading characteristics.

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