WASHINGTON, May 4, 2026 — The Commodity Futures Trading Commission said Monday, in a statement, that staff from its Division of Market Oversight and Division of Clearing and Risk have issued a supplemental no-action letter addressing swap data reporting and recordkeeping requirements for certain event contract transactions.
The position, set out in CFTC Letter No. 26-13, modifies prior no-action relief to include Bitnomial Clearinghouse, LLC and revises conditions established under CFTC Letter No. 25-26.
Expansion of clearing scope
Under the updated framework, staff said they will not recommend enforcement action against Railbird Exchange, LLC, Bitnomial Clearinghouse, LLC, or their participants for failure to comply with certain swap-related reporting and recordkeeping requirements in connection with fully collateralized event contract transactions executed on Railbird and cleared through Bitnomial.
The letter extends the prior relief to include Bitnomial as a derivatives clearing organization covered by the no-action position, reflecting Railbird’s planned transition from QC Clearing to Bitnomial while maintaining the existing scope of instruments.
Removal of third-party clearing restriction
The divisions also removed a condition included in the prior letter that prohibited Railbird participants from clearing contracts through third-party clearing members, following an amendment to Railbird’s designated contract market order permitting intermediated clearing structures.
Contract structure and regulatory classification
According to the letter, the contracts covered by the relief are treated as swaps under the Commodity Exchange Act and include event-based instruments such as binary options and variable payout contracts linked to measurable outcomes.
The contracts must remain fully collateralized, requiring clearing organizations to hold sufficient funds at all times to cover potential losses.
Conditions and supervisory access
The no-action position remains subject to conditions requiring publication of transaction data, ongoing reporting to the Commission, and maintenance of records accessible to regulators, including the Department of Justice and the Securities and Exchange Commission.
The CFTC said the position reflects staff views and does not constitute a binding rule or a determination on the legality of the underlying contracts.
