CFTC warns 24/7 derivatives trading may suit crypto but not other markets

The U.S. Commodity Futures Trading Commission (CFTC) has issued an advisory warning that while 24/7 derivatives trading may be suitable for blockchain-based firms, it could be inappropriate for some traditional markets, CoinDesk reported. The commission stated that due to inherent differences between markets, a shift to 24/7 trading and clearing may not be suitable for all asset types. For certain markets or products, the CFTC pointed out, extending trading hours could lead to reduced liquidity, increased volatility, and wider bid-ask spreads, ultimately creating more opportunities for market manipulation.