CFTC issues advisory against broad event contract self-certifications
The advisory addresses concerns about the practice of submitting broad, template-style certifications that combine many potential event contract variations in a single certification.
US.- The Commodity Futures Trading Commission’s Division of Market Oversight has issued an advisory reminding the operators of event contract markets of the procedures for submitting self-certifications of a series. The advisory addresses concerns about the practice of submitting broad, template-style certifications that combine many potential event contract variations in a single certification.
The regulator said this approach limits the Division of Market Oversight’s ability to determine whether a designated contract market has provided all the information and analysis required by Commission Regulation § 40.2, and whether it has adequately evaluated the settlement methodology, data sources and core-principles compliance of any contract it intends to list.
The guidance clarifies when closely related event contracts may be certified as a class or submitted for approval under Commission Regulations §§ 40.2(d) or 40.3.
