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

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.”