The Commodity Futures Trading Commission (CFTC) has proposed new reporting rules for certain fully collateralized event contracts, seeking to replace a regulatory framework that has relied on staff no-action letters since 2017.
The proposal would amend Parts 15, 16, and 17 of the Commission’s regulations, requiring designated reporting markets, futures commission merchants, clearing members, and foreign brokers to report qualifying event contracts under the CFTC’s standard reporting regime.
The changes would move reporting requirements away from existing provisions in Parts 38, 39, 43, and 45 of the regulations, creating a dedicated framework for covered event contracts.
“Under my leadership, the CFTC will no longer regulate market participants through a patchwork of no-action letters, which serve as band-aids for unworkable regulations,” said CFTC Chairman Michael S. Selig. “This proposal is an important step in future-proofing the regulatory framework for event contracts.”
The proposal would also introduce a new Section 16.03 to Part 16, establishing reporting requirements specifically for covered event contracts.
The consultation comes as event contracts remain an active area of rulemaking and legal scrutiny in the U.S. derivatives market.
Earlier this year, the CFTC withdrew its appeal in the legal dispute over Kalshi’s political event contracts, while continuing to review the regulatory treatment of prediction markets.
