ARLINGTON, VIRGINIA, US — The National Grain and Feed Association (NGFA) is strongly opposed to any expansion of agriculture futures trading hours to a 24/7 schedule, warning of the negative consequences of round-the-clock derivatives trading in a letter submitted May 21 to the Commodity Futures Trading Commission (CFTC).

The CFTC has been seeking public input to inform its understanding of potential issues related to a designated contract market (DCM) or swap execution facility (SEF) electing to provide trading services on a 24/7 basis.

In addition to the potential issues associated with 24/7 trading, Commission staff sought public comment on any additional concerns related to the 24/7 clearing of these products, either at the derivatives clearing organization (DCO) providing clearing services or at a futures commission merchant (FCM) extending 24/7 trading and clearing services to customers.

“Extending current market activity such that it can effectively be done on a continuous basis may raise a number of questions related to market liquidity, collateral access, operational resiliency and the implications of a default occurring outside of normal business hours,” the CFTC said in its request for comment, which was issued in April.

The NGFA represents grain, feed, processing, exporting and other grain-related companies that operate facilities handling US grains and oilseeds. NGFA members, including commercial hedgers who rely on agricultural futures markets to manage price risk, warned that extending trading hours would increase costs and volatility without corresponding benefits to market function.

“Our members have been clear: Expanding trading hours to 24/7 would disrupt current risk management practices, increase operational costs, and create unnecessary exposure,” said Mike Seyfert, president and chief executive officer of the NGFA. “We hope the CFTC will recognize that longer trading hours do not equal stronger markets.”