US Regulators Urged to Approve Energy Perpetual Contracts

Hyperliquid Policy Center (HPC) and trade[XYZ] have submitted a joint comment letter to the US Commodity Futures Trading Commission (CFTC), urging them to introduce perpetual contracts for energy commodities, such as oil and natural gas, on regulated markets in the United States.

The letter highlights the benefits of perpetual contracts, including continuous trading over weekends and holidays, which can help mitigate price risks for companies like airlines and oil refiners. HPC notes that during February's oil crisis, trade[XYZ]'s WTI-perpetual contract prices reflected about two-thirds of the spot market movements from Friday to Sunday.

The joint letter also emphasizes the importance of 24-hour trading in energy markets, which can help reduce price volatility and provide more efficient risk management tools for market participants. HPC and trade[XYZ] are advocating for a technology-neutral and principle-based framework for evaluating perpetual contracts and 24-hour trading on regulated US markets.

The CFTC has already been exploring the introduction of perpetual contracts in the US, with the approval of KalshiEX's Bitcoin perpetual contract BTCPERP in May. However, the commission has expressed concerns about introducing perpetual contracts for other asset classes, including energy commodities.