The U.S. Commodity Futures Trading Commission (CFTC) is asking the public to weigh in on a new data reporting regime for fully collateralized event contracts, moving away from years of case‑by‑case no‑action relief. The proposal would place these products under a clearer, futures‑style reporting framework rather than treating them as swaps.
Inside the CFTC’s Proposed Reporting Rules for Event Contracts
In a notice of proposed rulemaking published June 25, the CFTC outlines amendments to Parts 15, 16, and 17 of its regulations. The draft rules create an alternative reporting system for “covered event contracts,” a category that includes fully collateralized prediction‑type products traded on exchanges.
Under the plan, designated contract markets, clearing members, futures commission merchants, and certain foreign brokers would report these contracts using the same core rules that apply to futures and options. They would do so under Parts 15 through 18, rather than relying on swap data reporting requirements in Parts 38, 39, 43, and 45 or repeated requests for staff relief.
The CFTC would add a new section 16.03 to Part 16 that defines “covered event contracts” and assigns exchanges specific reporting obligations, including those in 16.00–16.01 and in Parts 17 and 18. This codifies what has mostly existed as custom arrangements and no‑action letters since 2017.
Moving Beyond the ‘Patchwork’ of No‑Action Letters
Event contracts, including many prediction‑market products, have sat in a regulatory gray area because they can technically trigger swap reporting rules even when they trade and clear like binary futures. To address that mismatch, CFTC staff has issued a series of no‑action letters, most recently Letter 26‑14 in May 2026, easing swap data obligations for certain fully collateralized contracts, provided exchanges supplied futures‑style reports instead.
In announcing the new proposal, CFTC Chairman Michael S. Selig said, “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.” He called the rulemaking “an important step in future‑proofing the regulatory framework for event contracts.”
The agency withdrew an earlier, broader “Event Contracts” rule proposal in 2024 and is now focusing on reporting rather than product bans or new substantive limits. The current draft maintains transparency requirements but aims to align the reporting tools with how these markets actually operate.
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