CME Will Make Crypto Derivatives Trading 24/7 in May as Wall Street Eyes Similar Goal

In brief

  • CME Group said it will launch 24/7 crypto futures and options trading on May 29.
  • CFTC chair Mike Selig signaled support for nonstop crypto markets, calling them a “no-brainer.”
  • Securities exchanges like Nasdaq and the NYSE are similarly eyeing around-the-clock stock trading.

CME Group, the world’s top derivatives marketplace, announced Thursday it will launch 24/7 crypto futures and options trading in late May. The move comes as some of Wall Street’s biggest players seek to similarly make stock trading nonstop. Beginning on the afternoon of May 29, all CME crypto futures and options will trade continuously, with at least a two-hour weekly maintenance break over the weekend. Previously, such products traded 23 hours a day on weekdays, with a closure gap between Friday afternoon and Sunday evening. 

After May 29, trading will be possible in that Friday to Sunday period, but the transactions will have a trade date of the following business day. Clearing, settlement, and reporting will also be processed the following business day. "While not all markets lend themselves to operating 24/7, providing always-on access to our regulated, transparent cryptocurrency products ensures clients can manage their exposure and trade with confidence at any time,” Tim McCourt, CME’s global head of equities, FX, and alternative products, said in a statement. CME noted that the shift is pending regulatory review. But onstage at the Trump family’s World Liberty Forum at Mar-a-Lago yesterday, CFTC chair Mike Selig expressed his support for 24/7 crypto trading. Selig said 24/7 markets may not be the right fit for certain agricultural commodities, like wheat and corn, but are ideal for crypto.

“I will say in certain asset classes, it can create some friction,” he said. “It’s not a one-size-fits-all, but there are certain markets where it’s a no-brainer.” CME announced earlier this month on a quarterly earnings call that it was exploring 24/7 crypto trading, reiterating a plan that has been in the works since at least October. The adjustment, if approved, would allow institutional investors to change their crypto positions during moments of volatility in the digital assets market outside of standard trading hours. The 24/7 crypto market, unrestrained by any one company’s closure, often experiences huge swings during the weekend. CME’s move comes as Wall Street also looks to embrace nonstop trading, a transition encouraged and partially fostered by the crypto industry.  Onstage at the same Mar-a-Lago event where the CFTC chair spoke yesterday, the CEOs of Nasdaq and the New York Stock Exchange both said they are working quickly to enable stock trading 24 hours a day, seven days a week—with crypto playing a central role. The NYSE is currently developing an in-house, on-chain platform for the 24/7 settlement of tokenized stocks.

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