The U.S. Commodity Futures Trading Commission has withdrawn its proposed rulemaking on event contracts and rescinded a related staff advisory addressing sports-based event contracts, the agency said.
The actions remove a pending regulatory proposal and associated staff guidance concerning the treatment of certain event-based contracts under the Commodity Exchange Act.
Withdrawal of proposed rulemaking
The Commission said it has withdrawn its notice of proposed rulemaking related to event contracts, which had sought public comment on the scope and regulation of contracts tied to specific events.
The proposal had formed part of the CFTC’s review of how event-based contracts fit within the existing derivatives regulatory framework.
Rescission of staff sports advisory
In addition to withdrawing the proposed rule, the CFTC said it has also rescinded a staff advisory addressing sports-related event contracts.
The advisory had set out staff views on the application of CFTC rules to contracts based on sporting outcomes. Its withdrawal removes that guidance from staff interpretations.
Regulatory status
The CFTC said the withdrawals do not alter existing statutory requirements under the Commodity Exchange Act, and that market participants remain subject to applicable law and Commission oversight.
The Commission did not announce a replacement proposal or revised guidance alongside the withdrawals.
