CFTC proposes new event contract reporting rules for fully collateralized markets

Traders Union
All News
Regulators
CFTC event contract rules

Highlights

CFTC released a Notice of Proposed Rulemaking shifting reporting for certain fully collateralized event contracts into Parts 15–18 of its regulations.
The new framework replaces existing reporting rules from Parts 38, 39, 43, and 45 for event contracts impacting reporting markets, FCMs, clearing members, and foreign brokers.
CFTC Chairman Michael S. Selig emphasized the move ends the reliance on no-action letters and aims to establish a durable compliance structure for event contract reporting.

Proposed reporting framework for event contracts

As reported by the Commodity Futures Trading Commission, the agency has published a Notice of Proposed Rulemaking that would shift reporting for certain fully collateralized event contracts into the framework set out in Parts 15 through 18 of its regulations.

The proposal applies to certain reporting markets, futures commission merchants, clearing members and foreign brokers. It would move these contracts away from reporting rules contained in certain sections of Parts 38, 39, 43 and 45, creating an alternate structure for data reporting.

The CFTC also proposes adding new Section 16.03, titled "Covered Event Contracts," to Part 16 on reports by contract markets and swap execution facilities. The draft specifically provides for reporting under Section 16.00, Section 16.01, Part 17 and Part 18 of the Commission's regulations.

Regulatory clarity and market impact

CFTC Chairman Michael S. Selig says the agency will no longer regulate market participants through what he describes as a patchwork of no-action letters used to address unworkable rules. He says the proposal marks a step toward future-proofing the regulatory framework for event contracts.

For firms active in these products, the rulemaking could replace an arrangement based on staff relief with a more durable compliance structure. The consultation also signals continued regulatory attention on how event contracts are reported across U.S. derivatives markets.

Our earlier article on the RRE 31 Loan Management DAC transaction explained the launch of a new euro-denominated cash-flow CLO targeting a €400 million portfolio, managed by Redding Ridge Asset Management (UK) LLP. We highlighted its preliminary note ratings, core credit-support features (including coverage tests and overcollateralisation triggers), and the manager’s scale across European CLOs as key context for investors assessing reporting, transparency, and risk in structured products.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.