CFTC Extends Comment Period for Proposal to Ban Listing of Certain "Events Contracts"

The CFTC extended the comment period until August 8, 2024 for proposed amendments to ban the listing and clearing of certain "event contracts" and "gaming" derivatives. The original comment deadline was July 9, 2024. 

The proposal would amend CFTC Regulation 40.11 ("Review of event contracts based upon certain excluded commodities") to further specify types of "event contracts" that fall within the scope of CEA Section 5c(c)(5)(C) ("Special rule for review and approval of event contracts and swaps contracts"). (See previous coverage.) The amendments, among other things, define "gaming" and determine that "event contracts" enumerated in CEA Section 5c(c)(5)(C), including gaming, war, terrorism, assassination and activity that is unlawful under any Federal or State law, are, as a category, contrary to the public interest, and therefore may not be listed for trading or accepted for clearing on or through a CFTC-registered entity.