US CFTC is considering preventing CME from launching all-weather crude oil contracts

According to Bloomberg, the U.S. Commodity Futures Trading Commission (CFTC) is considering whether to block the Chicago Mercantile Exchange Group (CME)'s application to launch an all-weather crude oil contract. A senior CFTC official said all-weather trading may not be suitable for crude oil because it could exacerbate already extreme volatility during times of geopolitical tensions. CME surprised the CFTC last Thursday when it announced plans to launch crude oil and gold futures contracts 24 hours a day, seven days a week. The new crude oil contract will be one-tenth of the existing micro WTI futures contract and is scheduled to go online on August 30 and will require regulatory review. A week ago, the CEO of CME expressed "serious concerns" about the CFTC clearing the way for cryptocurrency perpetual contracts. The CFTC said it will evaluate perpetual contract applications on a case-by-case basis and that certain assets may not be suitable for the product.