The Commodity Futures Trading Commission (CFTC) has provided some input on its position on sports contracts in a new letter to exchanges and operators under its jurisdiction.
That criticism?
They haven’t yet examined them to reach a conclusion.
According to a communication, the CFTC has not examined sports.
Three acting CFTC directors cautioned operators in a footnote to the guideline that the regulator has not yet assessed the sale of contracts for sporting events. Acting Directors Thomas J. Smith of the Market Participants Division, Rahul Varma of the Market Oversight Division, and Richard Haynes of the Clearing and Risk Division wrote the letter.
According to the footnote, “The Commission has not yet been asked to take any formal action to authorize the listing for trading of contracts related to sporting events on any DCM.”
“In accordance with self-certifications submitted by the appropriate DCM in accordance with CEA section 5c(c)(1) and Commission regulation 40.2, 7 U.S.C. § 7a-2(c)(1), all contracts pertaining to sporting events that are presently listed for trade on DCMs have been listed. 17 CFR 40.2, and the Commission has not yet determined whether any of these contracts include an activity listed or forbidden by CEA section 5c(c)(5)(C)(i), 7 U.S.C. § 7a-2(c)(5)(C)(i), or Commission regulation 40.11(a), 17 CFR 40.11(a).
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