Starting in late July, the CME Group Inc will introduce round-the-clock trading for gold and crude oil futures contracts, formally bringing the "7x24" non-stop trading model into the mainstream regulated derivatives market.
According to reports, the exchange plans to launch 24/7 trading for a 1-ounce gold futures contract on July 26. A new, smaller crude oil-linked contract, sized at one-tenth of the existing Micro WTI futures, will follow on August 30. Both contracts are pending regulatory approval and will be cash-settled, listed on the NYMEX and COMEX exchanges, respectively.
This move by the CME comes as demand for 24/7 trading on offshore platforms, such as Hyperliquid, has surged. The Iran conflict has caused significant volatility in energy markets, leading to a sharp increase in trading volumes for related crude oil products. Concurrently, platforms like Binance, which also operate outside U.S. regulatory oversight, have recently launched similar round-the-clock commodity trading services.
Analysts suggest that the CME's initiative aims to capture this demand within a regulated trading framework.
Regulatory and Competitive Pressures Drive CME's Expansion
The launch of these all-hours contracts is a response by the CME to pressures on both regulatory and competitive fronts.
On the regulatory side, reports indicate that Intercontinental Exchange Inc. and the CME have jointly urged U.S. regulators to impose restrictions on offshore platforms like Hyperliquid.
However, before any regulatory action materializes, the CME has chosen to proactively enter the market with its own products, offering investors a regulated alternative for participating in 24/7 trading.
In terms of product design, the new crude oil contract is only one-tenth the size of the existing Micro WTI futures, lowering the entry barrier and clearly targeting retail and small-scale traders. For gold, the exchange will extend the trading hours of its existing 1-ounce contract to operate continuously throughout the week.
Both contracts will be cash-settled, further simplifying the settlement process and reducing participation hurdles.
From a market perspective, the ongoing turmoil in energy markets stemming from the Iran conflict has sharply increased investor demand for tools that can respond to geopolitical events during non-traditional trading hours. Offshore platforms like Hyperliquid have seen rapid volume growth by capitalizing on this demand.
The CME's strategy essentially aims to redirect this demand from a regulatory grey area into a regulated exchange environment while also seeking new business growth for itself.
The launch of these contracts remains subject to regulatory approval, and their final implementation depends on the progress of the approval process.