CFTC proposes framework for event contracts on enumerated activities
CFTC proposed amendments to Regulation 40.11 and a new Appendix F, establishing a structured framework for evaluating event contracts, including those referencing sporting events.
In response to rapid growth of event contracts on DCMs, the CFTC is formalizing how it assesses contracts involving enumerated activities such as gaming and sports. The framework will clarify permissibility and procedural requirements, affecting product design and listing strategies for prediction markets.
Defines federal perimeter for sports and event-based contracts, central to prediction market product strategy and CFTC oversight.
Action Required
Review event contract product approvals, self-certification practices, and compliance with potential new evaluation criteria under Part 40.
First structured CFTC framework for evaluating enumerated-activity event contracts amid rapid market growth.
Map event contract pipeline against proposed Appendix F criteria; engage in comment process and update product governance for Part 40 self-certifications.
“CFTC published an NPRM proposing amendments to Regulation 40.11 and adding Appendix F to part 40, establishing a structured framework for evaluating event contracts including those referencing sporting events.”