CFTC advisory tightens event contract self-certification practice

CFTC Division of Market Oversight issued an advisory on proper procedures for DCM self-certifications of event contract series, targeting broad template-style filings.

DMO signaled it will no longer tolerate omnibus self-certifications bundling many event contract variations. DCMs must file discrete, well-specified certifications so DMO can assess statutory compliance, including public interest considerations under Section 5c(c)(1).

Directly affects prediction and event contract markets, narrowing operational flexibility and raising product approval risk.

Reflects heightened CFTC scrutiny of event contracts amid rapid growth in prediction markets and prior enforcement disputes.

“CFTC Division of Market Oversight issued an advisory reminding DCMs of proper procedures for self-certifying event contract series, warning that broad template-style certifications limit DMO's ability to review.”