Retail investors in the US are increasingly turning to virtual private networks, or VPNs, to access offshore platforms for 24/7 oil trading, bypassing traditional market hours and geographic restrictions. This practice has drawn mounting warnings from regulated commodity firms and industry groups concerned about market risks and regulatory gaps.
The allure of extended trading hours has grown amid heightened volatility tied to the Iran war and surprise announcements from the Trump administration after market close. Established commodity operators warn that such circumvention undermines oversight, with the Commodity Markets Council highlighting three key risks: loss of protections under the Commodity Exchange Act, reduced CFTC visibility into offshore positions, and potential disruption to opening moments of benchmark contracts due to weekend and overnight trading on unregulated venues.
Terry Duffy, CEO of CME Group Inc., expressed concern in a Bloomberg Television interview, noting the lack of policing over these activities. The council has urged the Commodity Futures Trading Commission to act, echoing earlier enforcement actions against offshore crypto exchanges like Binance Holdings Ltd. and Ku Coin.
Despite these concerns, the commodities establishment appears resigned that 24/7 trading is inevitable. The focus, the council says, should be on ensuring consistent regulatory standards and effective enforcement across all venues.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing