CFTC proposes treating event contracts as swaps

The Commodity Futures Trading Commission has proposed adding event contracts to the legal definition of a swap. The change would cover contracts tied to sport, politics, culture and weather.

Chairman Michael Selig said event contracts "are commodity derivatives squarely within the CFTC's regulatory remit". A companion rule keeps traditional sportsbook wagers outside the definition.

Comments are open for 30 days after publication in the Federal Register. More than 40 states and DC have argued that sports event contracts should fall under state law, and New Jersey has asked the Supreme Court to decide the question.