CFTC Seeks Public Comment on Notice of Proposed Rulemaking Concerning the Inclusion of Certain Event Contracts in the Definition of Swap

What this means

A factual summary is pending editorial review. The complete official release is reproduced below with issuer attribution and a direct link to the original publication.

Official release

Source material from Commodity Futures Trading Commission. The wording below is the issuer’s statement.

WASHINGTON — The Commodity Futures Trading Commission today published a Notice of Proposed Rulemaking that proposes providing additional market clarity by expressly further defining the term “swap” to include event contracts, including those based on sports, politics, cultural, and weather-related events. The proposal notes these contracts are financial instruments that are commonly known to the trade as swaps and proposes to resolve any ambiguity regarding these contracts.

“Americans use event contracts to hedge risks, speculate, and provide the public with information about the outcome of future events,” said Chairman Michael S. Selig. “These products are commodity derivatives squarely within the CFTC’s regulatory remit under the Commodity Exchange Act and are within the agency’s exclusive jurisdiction.”

Comments to the NPRM must be submitted in writing via Regulations.gov and received within 30 days of the NPRM’s publication in the Federal Register.

Release text attributed to Commodity Futures Trading Commission. Consult the official publication for any subsequent corrections or updates.