CFTC Blocks CME's 24/7 Crude Oil Futures Launch
CME is trading near its 52-week low of $218.31 (8.5% above the low) on light trading volume (0.3× avg).
Summary
The CFTC is exercising its authority to stay CME's self-certified 24/7 crude oil futures contract, blocking the planned launch. CME had filed on July 8 despite an ongoing public comment period, and the CFTC will now conduct a thorough review before allowing listing. This escalates the ongoing regulatory clash between CME and the CFTC, following CME's lawsuit over perpetual futures and CEO Duffy's prior warnings. The immediate revenue opportunity from round-the-clock crude trading is now delayed indefinitely, and the regulatory friction could weigh on CME's product expansion strategy.
At the time of this announcement, CME was trading at $236.97 on NASDAQ in the Finance sector, with a market capitalization of approximately $85.9B. The 52-week trading range was $218.31 to $329.16. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.