CME Group drops plan for round-the-clock crude oil contract

CME Group (NASDAQ: CME) said it is withdrawing its filing to launch a 10-barrel crude oil futures contract that had been designed to trade around the clock, citing concerns raised by industry participants about potential unintended consequences.

Chairman and Chief Executive Terry Duffy said the contract was conceived as a regulated alternative to 24/7 oil products already available through other venues, including what he described as onshore prediction markets and offshore perpetual contracts that are illegal for U.S. participants but accessible via virtual private networks.

"Based on extensive conversations with industry participants, we have determined that key constituents are concerned that introducing 24/7 trading in energy without further due diligence could create unintended consequences, possibly introducing additional risk in the marketplace," Duffy said in a statement.

Duffy also called on the Commodity Futures Trading Commission to address what he characterized as an uneven competitive landscape, saying the regulator should "ensure all derivatives products meet the standards the law requires, in compliance with the core principles of the Commodity Exchange Act."

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