Hyperliquid Policy Center and tradeXYZ have petitioned the CFTC to establish a regulatory framework for energy perpetual contracts, citing the need for 24/7 trading to improve hedging and price discovery during periods when traditional futures markets are closed.
The proposal could significantly alter energy derivatives trading by introducing 24/7 access to regulated perpetual contracts, potentially improving risk management for businesses and enhancing price discovery during periods of market volatility.
Hyperliquid Policy Center and tradeXYZ have jointly petitioned the U.S. Commodity Futures Trading Commission (CFTC) to create a regulatory pathway for energy perpetual contracts and enable 24/7 trading in the United States. The proposal specifically targets contracts linked to WTI crude, Brent crude, and Henry Hub natural gas.
tradeXYZ has been operating perpetual markets on the Hyperliquid platform since October 2025, accumulating over $500 billion in total trading volume. Unlike traditional futures contracts with fixed expiry dates, perpetual contracts use funding payments to keep their prices aligned with the underlying asset, allowing traders to maintain exposure without constant rollovers.
The groups argue that continuous trading is essential for managing risk, especially during geopolitical events. They cited the Middle East conflict that began on February 28, during which U.S. oil futures were closed, while oil perpetual contracts on Hyperliquid continued to trade. Research presented in their filing indicated that during nearly 75% of studied weekend closures, crude perpetual prices more accurately reflected the subsequent Sunday reopening price than the previous Friday's close.
This continuous trading capability, they contend, would provide crucial flexibility for businesses like airlines and refiners to adjust their energy price exposure without waiting for traditional markets to reopen. The proposal also includes specific regulatory recommendations, such as leverage limits, clear details on funding and liquidation mechanisms, and measures to protect market integrity.
Furthermore, Hyperliquid and tradeXYZ requested clarification on how terms like 'business day' would apply to continuously operating markets and proposed allowing stablecoins and tokenized traditional assets to be used as margin. They also asked the CFTC to permit on-chain trading, margin, clearing, settlement, and recordkeeping systems, provided they meet existing regulatory requirements. The CFTC had previously allowed regulated perpetual futures for digital assets in May and has consulted on perpetual contracts for physical commodities.