CFTC Eases Reporting Rules for Event Contract Markets

• The CFTC granted no-action relief for swap reporting tied to fully collateralized event contracts.

• The framework extends protections to firms covered under earlier event contract no-action letters.

• New applicants may receive identical relief under a centralized reporting process from the CFTC.

The Commodity Futures Trading Commission issued a new no-action letter Thursday covering swap data reporting and recordkeeping requirements for event contracts. The relief applies to designated contract markets, derivatives clearing organizations, and market participants handling fully collateralized event contract transactions. According to the CFTC’s Division of Market Oversight and Division of Clearing and Risk, staff will not recommend enforcement actions tied to specific swap reporting obligations covered in the letter.

CFTC Responds To Industry Requests

The relief follows multiple requests from designated contract markets and clearing organizations that list and clear event contracts. According to the agency, firms sought clarity around reporting obligations tied to fully collateralized transactions.

Under the no-action position, the divisions will not pursue enforcement recommendations for certain swap-related recordkeeping failures. The relief also covers failures to report related transaction data to swap data repositories.

However, the no-action relief only applies under conditions outlined in the letter released Thursday. The divisions said the position aims to streamline future requests involving similar products.

At the same time, the CFTC noted that more firms are expected to seek similar treatment. Those requests could involve modified designation orders, new clearing organizations, or additional market structure changes.

Existing Beneficiaries Receive Expanded Coverage

The divisions confirmed the latest relief extends to all beneficiaries covered under previous no-action letters involving comparable contracts. As a result, earlier applicants will remain protected under the updated framework.

Meanwhile, new entities planning to list or clear similar event contracts may also request identical relief from the divisions. If approved, the agency will add those firms to an appendix attached to the letter.

The CFTC said that approach removes the need to repeatedly issue nearly identical no-action letters for future applicants. It also standardizes how staff handle event contract reporting requests across markets.

Reporting Process Gets Centralized

According to the divisions, the latest framework creates a more uniform process for handling event contract data reporting matters. The agency said the structure improves consistency for both existing participants and future applicants.Notably, the relief specifically targets fully collateralized event contract transactions cleared through approved market infrastructure. The divisions did not announce changes to broader swap reporting regulations outside the scope of the letter.