CME’s 24/7 Gold Futures Draw $60 Million in Debut Weekend While Crude Oil Remains Blocked
- CME Group reported nearly 15,000 one-ounce gold contracts traded during its first weekend of continuous, 24/7 operations.
- The CFTC delayed its public comment deadline on 24/7 energy trading and perpetual crude contracts until August 26.
CME Group launched weekend trading for its one-ounce gold futures, generating roughly $60 million in notional value across nearly 15,000 traded contracts during its initial Sunday run.
Oil futures, however, failed to secure regulatory approval. The Commodity Futures Trading Commission (CFTC) halted CME's proposed 10-barrel WTI crude contract on July 9—just a day before its planned launch. CFTC Chairman Michael Selig criticized CME’s attempt to self-certify the product, calling the move "wholly inappropriate."
Physical Delivery Creates Regulatory Divide
The differing regulatory outcomes stem from the underlying nature of the assets. After launching 24/7 trading for crypto options and futures in late May, CME announced plans in June to extend continuous trading to gold and oil.
According to Adam Haeems, Head of Asset Management at Tesseract Group, regulatory acceptance hinges on whether the spot market already operates continuously and if physical delivery is required. Continuous trading is generally permitted for markets that naturally run around the clock, but faces roadblocks when physical delivery is involved.
Meanwhile, prediction and derivatives platform Kalshi filed with the CFTC on July 21 to offer 24/5 perpetual futures for gold, silver, and platinum—marking its expansion beyond cryptocurrency. The CFTC has 45 days to review the application.
CFTC Delays Decision on Energy Perpetuals
On July 23, the CFTC extended its public feedback period on continuous energy trading and perpetual contracts to August 26. The 30-day extension allows time to address stakeholder requests and additional regulatory questions.
The agency's inquiry focuses on two core questions:
- Can standard futures contracts like crude oil trade 24/7 without changing their fixed expiration dates?
- Can perpetual futures—which use periodic funding payments instead of set expiry dates—be pegged to physical or storable commodities?
Funding Rates vs. Storage Costs
Industry experts question whether perpetual contracts suit physical commodities. Maxime Seiler, CEO and Co-Founder at STS Digital, noted that while perpetual structures work well for Bitcoin due to continuous trading and minimal holding costs, physical goods complicate the model. Storage expenses, convenience yields, and seasonal demand disrupt the funding mechanism, which wasn't built to accommodate term structures.
Seiler added that perpetuals undermine the core purpose of futures for commercial hedgers. Producers and refiners rely on traditional futures to lock in predictable forward prices; perpetual contracts introduce variable funding fees that are impossible to forecast, removing the primary incentive to hedge.
Despite regulatory uncertainty in the U.S., retail brokers abroad are moving ahead. Retail venue Pepperstone expanded its perpetual CFD offerings this month to cover metals, stock indices, and crude oil.
Liquidity Providers Eye Growing Domestic Market
Institutional players see emerging opportunities in regulated U.S. markets. Paul Howard, Senior Director at Wincent, argued that recent CFTC approvals expand domestic access rather than eroding offshore advantages.
The U.S. market for regulated perpetuals is still young. The CFTC approved Kalshi’s Bitcoin perpetual contract in late May, and Kraken launched CFTC-regulated perpetuals in mid-June through its Bitnomial division. However, CME filed a lawsuit against the CFTC in June, alleging these contracts are legally swaps under Dodd-Frank and should not have been cleared as futures. The lawsuit remains pending in Washington.
Weekend Banking Remains a Key Bottleneck
A major hurdle for 24/7 trading is the lack of underlying banking infrastructure. Haeems pointed out that settlement systems like Fedwire do not operate over long weekend stretches, making weekend margin calls difficult to process. He estimates the Federal Reserve won't implement a six-day operating schedule until 2028 or 2029.
Seiler highlighted that continuous trading on weekday-only clearing systems creates roughly three days of unfunded market exposure for positions opened after Friday's close. The CFTC’s consultation explicitly asks market participants what assets should qualify as acceptable collateral when legacy payment systems are offline.
Despite these hurdles, exchange executives emphasize the market demand. Jin Hennig, CME’s Global Head of Metals, noted that "global events don't stop on weekends." CME's 10-barrel WTI crude contract is tentatively slated for an August 30 launch, subject to an ongoing 45-day CFTC review that could be extended by an additional 45 days.