U.S. regulators plan to block CME Group's application for 24-hour oil contracts

The U.S. Commodity Futures Trading Commission (CFTC) plans to block the Chicago Mercantile Exchange (CME) from quickly listing a 24x7 oil contract due to concerns that the energy market is not ready to handle a surge of around-the-clock derivative contracts.

CME stated in June that it plans to offer around-the-clock trading for a futures contract linked to WTI crude oil, based on 10 barrels, arguing that investors want to manage their positions "whenever news breaks." On Wednesday, CME submitted a self-certification application for this new product, meaning the CFTC has only one day to intervene, or the contract will be available for trading. According to informed sources, the CFTC plans to block CME's self-certification.

CFTC Chairman Michael C. Selig has met in recent weeks with executives from energy companies such as Shell, Vitol, BP, and ExxonMobil. Another application submitted by CME for the same product (which requires a 45-day review period) is still under consideration by the regulatory agency.