CFTC Proposes New Data Reporting Framework for Fully Collateralized Event Contracts

The Commodity Futures Trading Commission (CFTC) has published a Notice of Proposed Rulemaking seeking public comment on proposed amendments to Part 15, Part 16, and Part 17 of Commission regulations. The proposed rule sets forth an alternate data reporting framework for certain fully collateralized event contracts, which have operated under CFTC staff no-action letters since 2017. Under the proposed revisions, designated reporting markets, futures commission merchants (FCMs), clearing members, and foreign brokers would be required to report these event contracts in accordance with Parts 15 through 18, rather than under the reporting provisions outlined in specific sections of Parts 38, 39, 43, and 45. CFTC Chairman Michael S. Selig noted that the regulatory update is designed to establish clear, permanent rules rather than relying on temporary relief measures, describing the proposal as an essential step toward future-proofing oversight for event contracts. Under the proposed structure, a new Section 16.03, titled "Covered Event Contracts," would be added to Part 16 regarding reports by contract markets and swap execution facilities. This addition will specify reporting obligations pursuant to Section 16.00, Section 16.01, Part 17, and Part 18 of the CFTC's regulations.