On May 29, the CFTC’s Division of Clearing and Risk, Division of Market Oversight, and Market Participants Division issued a staff advisory outlining regulatory expectations for designated contract markets, swap execution facilities, derivatives clearing organizations, and futures commission merchants (FCMs) seeking to extend trading and clearing operations to a 24/7 basis. The advisory stated that interest in continuous trading has been driven partly by developments in market infrastructure — such as blockchain networks, the emergence of stablecoins and crypto assets, and the growing accessibility of mobile trading platforms — that have enabled an increasing number of venues to offer 24/7 access to participants. The CFTC emphasized that 24/7 trading may not be suitable for all asset classes, noting that derivatives referencing crypto assets may be better suited due to their digital infrastructure and global reach than other markets such as agricultural products.

The advisory addressed key areas of regulatory focus, including: (i) settlement design risks during off-peak periods; (ii) real-time monitoring and surveillance to address reduced liquidity, increased volatility, and manipulation risks during “thinly traded” hours; (iii) heightened system safeguard and business continuity requirements; (iv) adequate compliance staffing during overnight and weekend periods; (v) clearing and margin considerations, including whether collateral calls should extend to weekends and whether margin calibrations need adjustment for multi-day coverage; and (vi) FCM obligations regarding segregation of customer funds, risk disclosures, and risk management programs. Though not creating any new obligations for registered entities, the advisory recommends proactive engagement with the CFTC and states that registered entities must submit rule changes under Part 40 before implementing 24/7 operations.