CFTC Bars Template Filings for Prediction‑Market Event Contracts

Overview

• The CFTC issued a second advisory on July 24 warning designated contract markets not to submit broad, template‑style self‑certifications for event contracts.
• The Division of Market Oversight told registered exchanges they must supply the specific terms, the settlement method, the data sources, and a compliance analysis for each contract they plan to list.
• The agency said closely related contracts may be certified as a class only when pricing sources, formulas, procedures and payment methods are identical and when a prior certified contract exists for comparison.
• The advisory keeps the Regulation 40.2 self‑certification route available but says staff may delay listings or require separate filings when submissions do not give enough detail for review.
• The warning arrived before the July 27 comment deadline on a proposed three‑step public‑interest review for contracts tied to gaming, war, terrorism or assassination, and it follows a recent surge in listings and trading that has pushed monthly volume into the tens of billions.