The Commodity Futures Trading Commission (CFTC) is exploring the possibility of introducing crypto-style perpetual contracts and 24/7 trading to physical energy markets. This move would bring a new market structure pioneered in cryptocurrency into traditional commodities.
The CFTC has issued a request for public input on extending standard futures contracts, including energy futures, to a 24/7 trading schedule while keeping their fixed expiration intact. The agency also wants to know about the potential listing of perpetual contracts that reference physically delivered or storable energy commodities, such as crude oil.
Crypto-style perpetual contracts have no expiration date and are kept aligned with spot prices through periodic funding rate payments. They have long dominated offshore crypto venues, but their mechanics would need to be adapted for use in physical commodities like oil.