Commodities
CME Axes Continuous Trading WTI Crude Futures Contract
The CME Group has put on hold its plan to launch a West Texas Intermediate (WTI) crude futures contract that would trade around the clock. The move comes after market participants raised concerns about risks to energy markets from continuous trading.
The proposed contract, one-tenth the size of CME's Micro WTI futures, was planned as a US-regulated product in response to competition from similar offerings on offshore platforms.
Industry representatives pointed out that thin weekend liquidity could distort prices and affect WTI's role as a key oil benchmark. They also highlighted weekend staffing demands, more complex commercial hedging, and the risk of margin calls outside regular business hours.