SUPPLEMENTARY INFORMATION:

I. Introduction and Background

On June 25, 2026, the CFTC requested public comment on two distinct but related matters arising from recent developments in energy derivatives markets.^[1] The first is the extension of standard futures contracts to 24/7 trading, without any change to the contracts' fixed expiration, delivery, or settlement terms. The second is the listing of perpetual contracts that reference physically delivered or storable energy commodities, such as crude oil. The Commission seeks comment on the implications of each matter for the reliability and manipulation-resistance of reference prices, market surveillance and operational readiness, the federal speculative position-limits regime, margin, clearing, and settlement, customer protection, and effects on the underlying physical markets and the commercial participants that rely on them. The comment period for the RFC closes on July 27, 2026. The Commission is extending the comment period by an additional thirty days, until August 26, 2026, in order to allow interested persons additional time to analyze the questions posed in the RFC and prepare their comments.

In addition to the questions set forth in the RFC, the Commission is further requesting comment on three further topics.

First, could the introduction of 24x7 trading in a smaller-scaled contract, that references the same underlying crude oil market (or is heavily correlated to it), create new incentives for participants holding benchmark futures or related TAS positions to establish a significant position before the benchmark market closes at the end of the week, engage in trading over the weekend in a manner that moves prices, and influence the price formation when the benchmark markets reopen, including potentially resulting in crude oil prices reaching negative prices?

Second, the Commission invites comment on the self-certified 24/7 oil contract listed by Chicago Mercantile Exchange's (“CME's”) New York Mercantile Exchange, Inc. (“NYMEX”) on July 8, 2026 and that the Commission stayed on July 9, 2026.^[2]

On July 8, 2026, NYMEX, a designated contract market, filed with the Commission a self-certification under section 5c(c)(1) of the Commodity Exchange Act for the 10-Barrel West Texas Intermediate (“WTI”) Crude Oil Futures contract. Specifically, the NYMEX submission sought to list for trading a contract on WTI crude oil designed to trade twenty-four hours per day, seven days per week, except for limited maintenance windows, including weekend and holiday periods during which the underlying physical crude oil market is not assessed (NYMEX Oil 24/7 Contract).

Under Commission Regulation 40.2, the certifying registered entity bears the burden of demonstrating compliance with the Act and the Commission's regulations, with the required explanation and analysis being complete with respect to the product's compliance with applicable provisions of the Act, including core principles. On July 9, 2026, the Commission stayed the listing of this contract pursuant to Commission Regulation 40.2(c) to examine whether the extension of standard energy futures to continuous around-the-clock trading is consistent with the Designated Contract Market (DCM) Core Principles, including with the reliability and manipulation-resistance of reference prices and with a contract market's capacity to surveil trading, particularly for physically delivered commodities such as crude oil whose cash markets are assessed only during defined windows.

The Commission invites comments on all aspects of the continuous trading of the NYMEX Oil 24/7 Contract, specifically the extension of this standard futures contract to 24/7 trading without any change to the contract's fixed expiration, delivery, or settlement terms. The Commission seeks comment on the implications for the reliability and manipulation-resistance of reference prices, market surveillance and operational readiness, the federal speculative position-limits regime, margin, clearing, and settlement, customer protection, and effects on the underlying physical crude oil markets and the commercial participants that rely on them.

Third, to the extent that industry participants are not presently prepared to support 24/7 trading of crude oil futures, the Commission requests comment on the anticipated timeline and sequencing for achieving operational readiness. Specifically, the Commission requests that commenters identify the concrete steps, investments, and system, staffing, or process changes that would be necessary to support continuous around-the-clock trading in compliance with Commission regulations and provide an estimate of the time required to implement each such step.

Commenters are encouraged to support their responses with data, empirical analysis, transaction-or market-level statistics, and supporting documents rather than with conclusory assertions. Where a commenter believes a consideration can be addressed, the Commission requests a specific description of how, including any contract terms or safeguards necessary to do so; where a commenter believes a consideration cannot be addressed, the Commission requests the explanation and basis for that view.

Note:

The following appendix will not appear in the Code of Federal Regulations.

Appendix To Request for Comment on the Extension of Standard Futures Contracts to 24/7 Trading and on Perpetual Contracts Referencing Physically Delivered or Storable Energy Commodities; Extension of Comment Period—Commission Voting Summary

On this matter, Chairman Selig voted in the affirmative. No Commissioner voted in the negative.

91 FR 47158