CME shelves 24/7 crude futures plan after pushback from market participants

CME Group has put on hold its plan to launch round-the-clock crude oil futures trading after facing opposition from parts of the industry, according to BlockBeats, citing Bloomberg. The exchange had been considering a 24/7 structure, but market participants raised concerns about how weekend trading could affect pricing and operations. Those concerns centered on the risk that thin weekend liquidity could distort West Texas Intermediate, or WTI, crude pricing. Participants also warned that continuous trading would add pressure on weekend staffing, commercial hedging activity, and margin calls outside normal business hours. In a statement issued on Friday, CME Chief Executive Terry Duffy said broad discussions with the market showed that key participants had widespread reservations. He said introducing round-the-clock energy trading without full due diligence could create unforeseen consequences and add risk to the market. The plan has now been shelved.