The National Grain and Feed Association (NGFA) has voiced strong opposition to the potential expansion of agricultural futures trading to a 24/7 schedule. In comments submitted to the Commodity Futures Trading Commission (CFTC), the industry group warned that round-the-clock trading would disrupt risk management practices and increase costs for market participants.
NGFA President and CEO Mike Seyfert emphasized the concerns of commercial hedgers who rely on agricultural futures markets. "Our members have been clear—expanding trading hours to 24/7 would disrupt current risk management practices, increase operational costs, and create unnecessary exposure," Seyfert said.
The association's letter responds to the CFTC's request for input on the implications of continuous derivatives trading. It highlights industry worries about diluted market liquidity, higher staffing and compliance burdens, and potential disconnects between cash and futures market operations.
NGFA members argue that extended trading hours would not strengthen markets or improve their function. Instead, they caution that such a move could lead to increased volatility without corresponding benefits.
The CFTC is expected to consider the industry feedback as it evaluates potential changes to futures trading schedules.
