CFTC Proposes New Data Reporting Rules for Event Contracts

The Commodity Futures Trading Commission (CFTC) has published a Notice of Proposed Rulemaking to amend regulations concerning data reporting for specific event contracts. These contracts, which are fully collateralized, have been under staff no-action letters since 2017. The proposed changes introduce an alternative reporting framework, requiring certain markets, futures commission merchants, and foreign brokers to report these contracts under new regulations outlined in Parts 15 through 18, replacing some existing sections of Parts 38, 39, 43, and 45.

Chairman Michael S. Selig emphasized that this move aims to eliminate the patchwork of no-action letters and establish a more consistent, future-proof regulatory structure for event contracts. The proposal includes a new section 16.03 titled 'Covered Event Contracts' in Part 16, detailing reporting obligations for contract markets and swap execution facilities, specifically referencing regulations in §§16.00, 16.01, Part 17, and Part 18.

This regulatory update is part of the CFTC's broader effort to clarify and streamline rules governing derivatives and event contracts, which are increasingly relevant in the crypto space, especially for projects dealing with derivatives or structured products based on event outcomes.