CFTC Seeks Public Input on 24/7 Derivatives Trading
1min read The Commodity Futures Trading Commission (CFTC) has initiated a public consultation on the potential implementation of 24/7 trading in derivatives markets. The agency, responsible for regulating these markets, is exploring this possibility to adapt to evolving financial trends and ensure the markets remain robust and resilient.
Acting Chairman Caroline Pham emphasized the need for a forward-looking approach to market structure shifts. She highlighted the growing trend towards extended trading hours, such as 24/7, 24/6, or 24/5, and expressed her anticipation for public input on this market innovation.
The CFTC is particularly interested in understanding the implications of allowing trading at all hours of the day. The request for comments seeks to address the potential effects on trading, clearing, and risk management, which may differ from current market hours. Additionally, the agency is looking to assess the risks associated with 24/7 trading, including those related to market integrity, customer protection, and retail trading.
The public is invited to submit their comments on this matter until May 21st. This initiative reflects the CFTC's commitment to staying ahead of market developments and ensuring that regulatory frameworks are aligned with the needs of all participants in the derivatives markets.
