Hyperliquid Advocates for 24/7 US Energy Perpetuals to Address Oil Market Weekend Gaps
The Hyperliquid Policy Center is urging the Commodity Futures Trading Commission (CFTC) to approve 24/7 energy perpetual contracts in response to weekend price gaps that leave traders exposed during geopolitical shocks. The group's research highlights a March oil crisis where prices surged by nearly 16% over a closed market, resulting in significant losses for unhedged positions. Using on-chain oil perpetuals could have reduced those losses from $1.58 million to around $62,000. The CFTC is currently evaluating the feasibility of round-the-clock trading and perpetual contracts tied to physical commodities like crude oil. While Hyperliquid argues that such products can improve hedging efficiency by eliminating contract rollovers and aligning with global market movements, regulators remain cautious about potential risks related to liquidity and surveillance. The debate centers on whether continuous markets reduce weekend risk or introduce new challenges. The CFTC’s decision could reshape the energy trading landscape in one of the world's most critical commodity sectors.
Topics: CFTC energy futures trading perpetual contracts