The Commodity Futures Trading Commission has published a Notice of Proposed Rulemaking to amend Regulation 40.11 and add Appendix F to part 40, creating a formal framework to assess certain event contracts listed by CFTC-registered entities. The proposal is aimed at contracts that may involve activities enumerated in Section 5c(c)(5)(C) of the Commodity Exchange Act and would require the Commission to determine both whether a contract involves one of those activities and whether it is contrary to the public interest. The move follows growth in the number and variety of event contracts, including contracts referencing sporting events. The proposal covers contracts involving terrorism, assassination, war, gaming, or conduct unlawful under federal or state law. It sets out a 90-day review process with procedural protections, introduces public interest factors to be applied on a contract-by-contract basis, and defines key statutory terms including involve and gaming. The Commodity Futures Trading Commission said the proposal is narrowly tailored to one aspect of its earlier Advanced Notice of Proposed Rulemaking on prediction markets, which may lead to further rulemaking.
Commodity Futures Trading Commission2026-06-10
Commodity Futures Trading Commission seeks comment on event contracts rule with 90 day review and public interest test
The Commodity Futures Trading Commission has proposed amendments to Regulation 40.11 and a new Appendix F to create a formal framework for reviewing certain event contracts listed by CFTC-registered entities. The framework would apply to contracts involving terrorism, assassination, war, gaming, or unlawful conduct, require a determination on whether they fall within Section 5c(c)(5)(C) of the Commodity Exchange Act and are contrary to the public interest, and introduce a 90-day review process with defined public interest factors and key statutory terms. The proposal is narrowly tailored to one aspect of the Commission’s earlier advance notice on prediction markets.