U.S. regulators propose to block CME Group’s application to launch 24-hour oil contracts.

The U.S. Commodity Futures Trading Commission (CFTC) plans to block Chicago Mercantile Exchange (CME)’s application to quickly launch 24/7 oil contracts, amid concerns that energy markets are not ready for an influx of large volumes of all-day derivatives contracts. CME said in June it planned to offer 24/7 trading for a futures contract tied to West Texas Intermediate (WTI) crude oil, denominated in 10-barrel lots, citing investor demand to manage positions “whenever news breaks.” On Wednesday, CME filed a self-certification application for the new product, which means the CFTC has only one day to intervene before the contract can be listed for trading. According to people familiar with the matter, the CFTC plans to block CME’s self-certification. CFTC Chair Michael Selesinger has met with executives from energy firms including Shell, Vitol, BP and ExxonMobil in recent weeks. Another application CME submitted for the same product, which requires a 45-day review period, is still under regulatory consideration.