CFTC Issues Advisory on Event Contract Self-Certifications for Exchanges

The Commodity Futures Trading Commission's (CFTC) Division of Market Oversight (DMO) has issued an advisory reminding designated contract markets (DCMs) of the required procedures for submitting self-certifications for event contract series. The regulatory advisory focuses on concerns regarding DCMs submitting broad, template-style certifications that aggregate numerous potential contract variations into a single filing. According to the regulator, these template-style submissions hinder the DMO's capacity to verify whether an exchange has supplied the necessary information, analysis, and explanations mandated by Commission Regulation § 40.2. The CFTC emphasized that proper self-certifications are critical for evaluating whether a contract's settlement methodology, data sources, and compliance with core regulatory principles have been adequately reviewed prior to listing. The guidance explicitly reiterates that exchanges must refrain from submitting broad, template-style certifications. In addition, the DMO outlined the specific conditions under which closely related event contracts may legitimately be certified as a class or submitted for formal approval under Commission Regulations §§ 40.2(d) or 40.3.