Scope Prime Launches 24/7 Oil CFDs as CME's Oil Futures Plan Remains on Hold

Wait 5 sec.

Scope Prime, theinstitutional arm of Rostro Group, has launched 24/7 liquidity for contractsfor difference on Brent and WTI crude oil, extending its around-the-clocktrading offering beyond precious metals.Following the rollout of its 24/7gold and silver CFDs earlier this year, Scope Prime has expanded itscontinuous trading offering to oil. The company said the move makes it one ofthe first prime of prime brokers to provide continuous over-the-counter CFDliquidity for oil markets.Oil Trading Pushes Beyond Market HoursThe product isintended for institutional clients, including brokers and funds that holdenergy-related positions outside the trading hours of traditional exchanges.The launch comes ascontinuous oil trading gains momentum across the industry. Earlier this month,the US Commodity Futures Trading Commission paused CME Group's proposed 24/7trading for a new 10-barrel WTI crude oil futures contract pending furtherregulatory review, although the exchange has already rolled out 24/7 goldfutures.At the same time,several OTC and crypto-native trading venues have expanded weekend andaround-the-clock access to oil-linked products, reflecting growing demand forhedging tools outside traditional market hours.Daniel Lawrance, ChiefExecutive Officer of Scope Prime, said demand for continuous trading hadincreased following the launch of the firm's precious metals products."Gold proved thatdemand for always-on markets is real," Lawrance said. He added that thecompany chose oil next because "the needs of the market are mostacute."Oil Traders Seek Weekend Risk ProtectionAccording to ScopePrime, events that influence oil prices, including OPEC+ production decisions,sanctions announcements and infrastructure disruptions, often occur aftermarkets close on Friday and before they reopen on Sunday. During that period,firms with energy exposure may be unable to hedge positions, increasing therisk of price gaps when trading resumes.The company saidbrokers can also face margin shortfalls and negative balance events if prices movesharply over the weekend while client positions remain open.This article was written by Tareq Sikder at www.financemagnates.com.