WASHINGTON, D.C.— Cantrell Dumas, Director of Derivatives Policy, issued the following statement in connection with the filing of comment letters in response to the Commodities Futures Trading Commission’s (CFTC) Request for Comment on the trading and clearing of derivatives on a 24/7 basis, and the trading and clearing of perpetual derivatives.
“The CFTC is standing at a critical crossroads for market integrity, and it is already veering off course. While simultaneously soliciting public input on the risks of both 24/7 trading and perpetual-style derivatives, the CFTC allowed 24/7 derivatives trading to proceed before the comment period had even closed. This premature decision undermines the integrity of the administrative process and signals to the public that meaningful input from market participants, consumer advocates, and other stakeholders may be disregarded in favor of expediency or commercial interests.
“These market structures are not innovations in responsible risk management. They are speculative tools designed to maximize trading volume, user engagement, and short-term profits for trading platforms. Both 24/7 derivatives trading and perpetual futures mimic the addictive mechanics of gambling apps, encouraging impulsive behavior through continuous access and leveraged exposure. For retail investors, this structure invites overtrading and catastrophic losses. For the broader market, it places round-the-clock strain on clearinghouses, exchanges, and risk management systems that are not designed to operate without pause.
“The CFTC must halt any further listing or approval of perpetual derivatives and 24/7 trading until it establishes clear, enforceable rules to protect retail customers, ensure robust market oversight, and safeguard financial stability. The CFTC’s mandate is to serve the public interest, not to accommodate industry hype masquerading as innovation. Nothing less than the credibility of the agency and the integrity of the derivatives markets is at stake.”
You can find our comment letters here and here.
###
Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.
