NACS Submits Comments to CFTC on Energy Futures Contracts

NACS this week, alongside NATSO and SIGMA, submitted comments to the Commodity Futures Trading Commission (the Commission) regarding two related matters the Commission is considering: the extension of standard futures contracts to 24/7 trading and perpetual contracts referencing physically delivered or storable energy commodities.

The comments urged the CFTC to reject two new financial products: 24/7 oil futures trading and “perpetual” oil futures contracts that would never expire. Neither product currently satisfies the conditions on which the commercial usefulness of energy futures depends: reliable price formation, effective surveillance, and workable clearing and settlement.

“We are deeply concerned about the risks presented by 24/7 trading and perpetual contracts for oil futures,” said Matt Durand, deputy general counsel of NACS. “These are speculative products with no clear commercial need that would make energy markets less reliable and more susceptible to manipulation. These risks would introduce new costs that could drive up fuel prices for businesses and consumers.”

The letter, sent in response to the Commission’s request for comment, states:

“We urge the Commission not to permit either of the products contemplated by the request at this time, as neither currently satisfies the conditions on which the commercial usefulness of energy futures depends: reliable price formation, effective surveillance and workable clearing and settlement. Standard energy futures should not trade continuously through weekends and holidays, and we support the Commission’s July 9, 2026 stay of NYMEX’s self-certified 10-barrel WTI crude oil futures contract (the NYMEX Oil 24/7 Contract).”