WASHINGTON, June 25, 2026 — The Commodity Futures Trading Commission has proposed a new reporting framework for certain fully collateralized event contracts, seeking to replace a reporting system that has relied on staff no-action letters since 2017 with formal Commission regulations.
The notice of proposed rulemaking would amend Parts 15, 16 and 17 of the Commission’s regulations to establish an alternative reporting regime for certain covered event contracts. Under the proposal, designated contract markets, futures commission merchants, clearing members and foreign brokers would report covered contracts under the Commission’s futures and options reporting framework rather than certain swap reporting requirements contained in Parts 38, 39, 43 and 45.
CFTC Chairman Michael S. Selig said the proposal would replace what he described as a “patchwork of no-action letters,” calling it “an important step in future-proofing the regulatory framework for event contracts.”
Proposed reporting framework
The proposal would add a new Section 16.03, titled “Covered Event Contracts,” to Part 16 of the Commission’s regulations. The new provision would define the event contracts eligible for the alternative reporting framework and establish the reporting and recordkeeping requirements applicable to those contracts. It would also establish reporting thresholds, require designated contract markets to publicly disseminate specified transaction data, and require them to obtain certain trader-identifying information.
According to the Commission, the proposal would codify aspects of multiple staff no-action letters issued since 2017 that have permitted certain fully collateralized event contracts to be reported under the futures and options reporting regime instead of the swaps reporting framework. If the proposal is finalized, the Commission expects those no-action letters to be withdrawn because a final rule would supersede them.
Regulatory rationale
The Commission said continuing to address reporting requirements through individual staff no-action letters creates inefficiencies, regulatory uncertainty and unnecessary burdens for market participants. It added that a uniform reporting framework would provide greater consistency while ensuring the Commission receives the information necessary for market monitoring, surveillance and oversight.
The proposal states that covered event contracts generally share characteristics with exchange-traded futures and options, including standardized terms, exchange trading and fungibility, while differing from traditional swaps. Because the contracts must be fully collateralized and centrally cleared, the Commission preliminarily believes they present lower systemic and counterparty credit risks than traditional swaps, making the futures and options reporting framework more appropriate for those contracts.
Growing market
The Commission also highlighted growth in the event contracts market. According to the proposal, designated contract markets listed an average of approximately five event contracts annually between 2006 and 2020. That figure increased to 131 in 2021, and designated contract markets certified approximately 1,600 event contracts for trading in 2025.
The proposal also states that Commission staff are reviewing several applications from entities seeking to operate prediction markets and have received additional inquiries from prospective applicants.
Why it matters
The proposal would replace a temporary reporting approach based on staff no-action relief with a formal regulatory framework for certain fully collateralized event contracts if adopted. According to the Commission, the changes are intended to provide a more consistent reporting regime for a growing segment of the U.S. event contracts market while reducing reliance on case-by-case staff relief. If finalized, the rule would also eliminate the need for eligible market participants to seek individual staff no-action letters covering those reporting requirements.
