Regulatory Alerts2024-06-10 | 2024-12125Event Contracts
The Commodity Futures Trading Commission proposes amendments to 17 CFR § 40.11 to explicitly define and prohibit certain event contracts from being listed for trading or cleared on CFTC-registered entities when they involve gaming or are contrary to the public interest. The rulemaking clarifies the statutory scope of excluded commodities under the Commodity Exchange Act, provides illustrative examples of prohibited contracts, and formally defines gaming to align regulatory text with congressional mandates. These changes aim to streamline compliance for registered entities, reduce the Commission’s resource-intensive individual contract reviews, and guide responsible market innovation by establishing clear boundaries for permissible event contract parameters.