The U.S. Commodity Futures Trading Commission (CFTC) has opened a formal discussion on continuous trading in regulated derivatives markets, identifying crypto-linked products as among the asset classes best positioned for a transition to 24-hour, seven-day-a-week market operations.
In a staff advisory issued on Friday, the agency’s Division of Clearing and Risk, Division of Market Oversight, and Market Participants Division outlined expectations for exchanges, clearinghouses, and intermediaries seeking to offer 24/7 trading and clearing services. The advisory does not create new regulatory requirements but provides a framework for how staff would assess proposals for round-the-clock market access.
Crypto markets highlighted as a natural candidate
The CFTC noted that advances in blockchain infrastructure, decentralized networks, stablecoins, and digital asset markets have contributed to growing interest in continuous trading models.
According to the advisory, crypto asset derivatives may be particularly suited to 24/7 trading because the underlying markets already operate continuously and are supported by globally accessible digital infrastructure. By contrast, the agency said some traditional asset classes, including agricultural markets, may face practical challenges due to regional trading patterns, customer needs, and existing hedging practices.
The agency emphasized that suitability for continuous trading will depend on the characteristics of individual markets and products rather than a one-size-fits-all approach.
Focus on market integrity and surveillance
While discussing the potential expansion of trading hours, CFTC staff warned that continuous markets could introduce new risks.
The advisory stated that thinner liquidity during certain periods could lead to wider bid-ask spreads, higher volatility, and greater opportunities for manipulation. As a result, designated contract markets (DCMs) and swap execution facilities (SEFs) would be expected to demonstrate their ability to conduct real-time surveillance and monitor abusive trading activity at all hours.
The agency also cautioned against settlement mechanisms that rely on underlying market prices during periods of limited activity, such as weekends or overnight sessions, due to concerns about market integrity and price distortions.
Clearing models under review
A significant portion of the advisory focuses on how clearing operations would function in a continuous trading environment. The CFTC outlined several potential models, ranging from maintaining traditional weekday collateral calls to systems that permit or require collateral transfers during weekends. Staff said clearinghouses would need to show that they can maintain adequate liquidity, margin coverage, and financial resources regardless of the model used.
The advisory specifically referenced stablecoins and crypto assets as collateral types that may present different operational considerations than traditional forms of collateral because they can generally move outside standard banking hours. At the same time, staff said clearing organizations would need to assess liquidity, credit, operational, and default-management risks associated with any nontraditional collateral arrangements.
Technology and staffing requirements
The advisory also highlights operational demands associated with nonstop market activity. Exchanges and trading venues would be expected to maintain highly resilient systems with redundant infrastructure, real-time monitoring, cybersecurity protections, and tested disaster-recovery capabilities. The CFTC said firms should eliminate single points of failure and maintain systems capable of supporting uninterrupted operations.
Staffing requirements would also increase under a 24/7 model. Market operators would need sufficient compliance personnel to conduct surveillance, investigate unusual activity, and oversee trading throughout weekends and overnight periods.
Additional responsibilities for brokers
Futures commission merchants (FCMs), which act as intermediaries between customers and derivatives markets, would face additional obligations if continuous trading expands. The advisory notes that brokers must continue complying with customer fund segregation requirements and maintain risk-management programs capable of addressing overnight and weekend volatility. Firms may also need to reassess residual interest levels, liquidity resources, and customer disclosure practices.
The agency highlighted the possibility that sharp market moves outside banking hours could complicate margin collection and increase the likelihood of automated liquidations.
Kalshi approval adds to 24/7 crypto market discussion
The advisory was released on the same day the CFTC approved KalshiEX’s BTCPERP contract, allowing the federally regulated exchange to list a Bitcoin perpetual futures contract tied to Bitcoin’s spot price. The Commission said the product complies with the Commodity Exchange Act and applicable CFTC regulations, including core principles governing designated contract markets.
The approval gives Kalshi a pathway to offer a Bitcoin perpetual futures product within the U.S. regulated derivatives framework, a market segment that has traditionally been dominated by offshore crypto exchanges. While separate from the 24/7 trading advisory, the decision underscores the agency’s increasing engagement with crypto-linked derivatives as market participants seek trading models that more closely align with continuously operating digital asset markets.
CFTC encourages early engagement
Although the advisory does not establish new rules, CFTC staff said any exchange, clearing organization, trading venue, or intermediary considering 24/7 operations should consult with the agency before implementation.
Future rule submissions involving continuous trading or clearing will be expected to explain operational changes, assess associated risks, describe mitigation measures, and demonstrate compliance with existing requirements under the Commodity Exchange Act and CFTC regulations.
The advisory represents one of the clearest indications yet that U.S. regulators are evaluating how regulated derivatives markets could adapt to trading patterns that have become commonplace in the crypto sector, while seeking to preserve market integrity and risk controls.
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