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Cryptopolitan 2025-04-22 05:01:50

CFTC seeks public input on 24/7 derivatives trading and perpetual futures

The Commodity Futures Trading Commission (CFTC) is inviting public feedback on the potential shift to round-the-clock trading in derivatives markets. Acting Chairman Caroline Pham noted in the press release that the CFTC should embrace a progressive stance to shifts in market structure to ensure their markets remain vibrant and resilient while safeguarding all participants. She pointed to the increasing trend toward extended trading hours, noting the move to “24/7, 24/6, or 24/5 trading hours” as an example. U.S. regulators weigh 24/7 trading and perpetual futures The proposal follows similar developments in equities markets. The Securities and Exchange Commission (SEC) recently approved 24 Exchanges to operate nearly around-the-clock, offering 23-hour trading days, five days a week. Nasdaq has also indicated it plans to extend its weekly trading hours. Meanwhile, some brokers, such as Robinhood Markets Inc,. already provide retail investors with 24-hour trading during the workweek. The CFTC also requests feedback on allowing perpetual futures—a derivative contract widely used outside the United States, particularly in digital asset markets. While the regulatory environment has become friendlier for those assets under President Donald Trump, perpetual futures contracts for cryptos remain largely unavailable to Americans. According to the agency, perpetual futures , commonly known as “perps,” do not have an expiration date. Instead, they are settled continuously, with pricing and margin calculations often occurring multiple times daily. The markets regulator stated that although some traders may find them appealing, the differences between the structure of existing derivatives contracts and perpetual contracts may raise novel questions and concerns related to trading and clearing risk management. According to a March blog post, Coinbase’s derivatives exchange intends to introduce “perpetual style” and 24/7 cryptocurrency futures trading. It has taken longer for other derivatives markets to follow suit. Korea exchange pushes ahead with 12-hour night trading Other major exchanges worldwide have also considered continuous trading. The Korea Exchange plans to launch its own independent night trading for derivatives in June. Announced on April 3, the strategic pivot marks a departure from the existing structure in which KOSPI 200 futures and options are listed and traded on the Europe-based derivatives exchange, Eurex. The Korea Exchange believes that opening up its own night trading system will enhance its global competitiveness and offer more convenience to investors. Under this new initiative, the exchange plans to expand its derivatives offerings. Korea Exchange, which currently provides five products, is working on providing more, such as U.S. dollar futures and government bond futures, to lure more investors and allow for more effective risk hedging. The exchange will also modernize by lengthening its trading day by an hour. The new schedule will extend trading hours from 6 PM to 6 AM the following day, creating a 12-hour trading day that fits into that window. Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More

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