HPC, tradeXYZ Urge CFTC to Open US Market to Energy Perpetual Futures
Summary
- HPC and tradeXYZ urged the CFTC to introduce energy asset-based perpetual futures to the US market.
- The firms said energy perpetual futures could improve market efficiency by providing 24-hour price discovery.
- They also emphasized that the contracts could provide a continuous risk-hedging tool for participants exposed to volatility in energy prices.
HPC and tradeXYZ have urged the Commodity Futures Trading Commission to establish a framework for trading perpetual futures tied to energy assets in the US market. The firms said the products could enable 24-hour price discovery and offer a tool for hedging risk.
Cointelegraph reported on August 26 that HPC and tradeXYZ had conveyed their position to the CFTC.
The two firms said energy perpetual futures could provide round-the-clock price discovery without the trading-hour constraints of traditional markets.
They added that the contracts could serve as a continuous hedging tool for market participants exposed to volatility in energy prices. The CFTC has recently been discussing a regulatory framework for new forms of derivatives linked to digital assets and prediction markets.
JH Kim
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