The agency has clearly defined event contracts as “swaps” under federal law. At the same time, the commission clarified that gambling is not included in the definition. Event contracts related to sports, politics, culture, and weather were classified as swaps.
The CFTC noted that these contracts are financial instruments Americans use to hedge risk. Agency Chairman Michael Selig stressed that such products are derivatives that fall under the agency’s exclusive jurisdiction. Former CFTC Chair Caroline Pham, meanwhile, said that the broad definition of a “commodity” allows the agency to regulate various markets without congressional approval.