Washington, D.C. — MFA urged the CFTC to address operational and regulatory issues before allowing 24/7 derivatives trading in regulated markets in a comment letter submitted today. The letter highlights several critical risks that could arise from around-the-clock trading without a clear regulatory framework and the market infrastructure to support it. MFA Chief Legal Officer Jennifer Han issued the following statement in conjunction with the letter:
“The CFTC must ensure the necessary infrastructure and regulatory framework are in place before allowing 24/7 trading in regulated derivatives markets to become commonplace. Continuous trading without proper preparation could strain clearing and margin practices, disrupt collateral management, and increase risks, particularly during low-liquidity periods. Thoughtful, phased-in reforms are essential to support innovation while maintaining market stability and investor confidence. We look forward to working with the CFTC to assess these challenges and ensure any transition to expanded trading hours is implemented safely.” — MFA Chief Legal Officer Jennifer Han
Read the full comment letter here.
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About the global alternative asset management industry
The global alternative asset management industry — including hedge funds, private credit funds, and hybrid funds — serves thousands of public and private pension funds, charitable endowments, foundations, and other global institutional investors. The industry provides portfolio diversification and risk-adjusted returns to help meet their funding obligations and return targets throughout the economic cycle.
About MFA
Managed Funds Association (MFA), based in Washington, D.C., New York City, Brussels, and London, represents the global alternative asset management industry. MFA’s mission is to advance the ability of alternative asset managers to raise capital, invest it, and generate returns for their beneficiaries. MFA advocates on behalf of its membership and convenes stakeholders to address global regulatory, operational, and business issues. MFA has more than 180 fund manager members, including traditional hedge funds, private credit funds, and hybrid funds, that employ a diverse set of investment strategies. Member firms help pension plans, university endowments, charitable foundations, and other institutional investors diversify their investments, manage risk, and generate attractive returns throughout the economic cycle.
