U.S. CFTC Releases 24/7 Trading Regulatory Guidance: Crypto Derivatives Better Suited for Round-the-Clock Trading

Odaily Planet Daily News The U.S. Commodity Futures Trading Commission (CFTC), through its Market Oversight, Clearing, and Risk divisions, has jointly issued staff guidance outlining regulatory expectations and compliance requirements for the market's growing 24/7 trading, clearing, and settlement models. The directive encourages 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 into 24/7 trading, and must proactively assess risk management and operational arrangements.

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

CFTC staff indicated that relevant institutions should ensure compliance with the regulatory framework and risk control requirements while driving market evolution, in order to support "responsible market innovation."