Commodity Futures Trading Commission staff issued an advisory setting out regulatory obligations and staff expectations for designated contract markets, swap execution facilities, derivatives clearing organizations, and futures commission merchants seeking to extend trading, clearing, and settlement on a 24/7 basis. Issued by the Division of Clearing and Risk, Division of Market Oversight, and Market Participants Division, the advisory responds to growing interest in round-the-clock market operation and reminds registrants that any such expansion must comply with the Commodity Exchange Act and Commission regulations. The advisory also highlights that the suitability of 24/7 activity differs across asset classes. It notes that derivatives referencing crypto assets may be better suited to continuous trading because of their digital infrastructure and global reach, while other markets such as agricultural derivatives may be less suited because of their customer base, regional characteristics, and specialized trading and hedging practices. Staff said registrants should take proactive steps as markets evolve to ensure continued compliance.

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