CME Group Faces Another Block from US CFTC Amid Treasury Link Launch Plan

CME Group, the world’s leading derivatives marketplace, is facing renewed regulatory challenges from the U.S. Commodity Futures Trading Commission (CFTC). The regulator has temporarily blocked the immediate launch of 24/7 crude oil futures trading, a product that CME had sought to self-certify.

According to the CFTC, the suspension was issued under existing rules to allow for further review of the product’s compliance with market regulations. The move comes after CME self-certified the new futures contract while the CFTC was still examining broader concerns about continuous trading in derivatives markets. The agency had recently opened a public comment period to assess whether around-the-clock futures trading fits within existing regulatory frameworks.

CFTC Chairman Michael S. Selig stated that the agency is carefully evaluating whether 24/7 futures markets adhere to core regulatory principles, noting that not all asset classes are viewed the same way. The CFTC emphasized that exchanges should engage with regulators before launching products that involve major structural changes, and that CME’s filing required additional scrutiny due to potential legal and market risks.

This latest disagreement adds to the growing tension between CME and the CFTC. Outgoing CME CEO Terry Duffy previously confirmed that the exchange considered legal action against the regulator over its approval of crypto futures products by Kalshi, which has since expanded into other derivatives markets.

Separately, CME Group is planning to launch Treasury Link, a platform designed to connect U.S. Treasury futures with the cash Treasury market. The service is expected to launch in the fourth quarter of 2026, subject to regulatory approval. It will allow traders to execute Treasury futures and cash market spreads in a single transaction.

Market participants are closely watching how CME Group navigates these regulatory hurdles. While the CFTC’s intervention may create short-term uncertainty, the successful launch of new products like Treasury Link could bolster the exchange’s long-term growth prospects.

Source: https://coingape.com/cme-group-faces-another-block-for-us-cftc-amid-treasury-link-launch-plan/