The Commodity Futures Trading Commission published a Notice of Proposed Rulemaking seeking public comment on amendments to Part 15, Part 16, and Part 17 of the Commission’s regulations.

The proposal sets forth an alternate framework for reporting of data for certain fully collateralized event contracts, which have been the subject of staff no-action letters since 2017. These revisions would require certain reporting markets, futures commission merchants, clearing members, and foreign brokers to report certain event contracts pursuant to the regulations in Parts 15 through 18 rather than the reporting regulations contained in certain sections of Parts 38, 39, 43 and 45.

“Under my leadership, the CFTC will no longer regulate market participants through a patchwork of no-action letters, which serve as band-aids for unworkable regulations. This proposal is an important step in future-proofing the regulatory framework for event contracts,” said Chairman Michael S. Selig.  “Our responsibility is to provide clear, workable regulations, and I’m committed to doing just that.”

The proposal would add a new section 16.03, titled “Covered Event Contracts” to Part 16, concerning “Reports by Contract Markets and Swap Execution Facilities.” The Proposal would specifically provide for reporting pursuant to §16.00, §16.01, Part 17, and Part 18 of the Commission regulations.

Source: CFTC