Key Takeaways:
The CFTC’s Division of Market Oversight issued a blanket no-action letter on May 13, 2026, covering all swap data reporting for event contracts.The ruling relieves DCMs, DCOs, and their participants from SDR reporting duties, reducing compliance costs across prediction market operators.New entities seeking identical relief can request inclusion in the no-action letter’s appendix, with the CFTC signaling uniform treatment going forward.Regulators explained that the decision came in response to repeated requests from DCMs and DCOs to list and clear event contracts. Multiple operators had filed individual requests seeking similar relief, leading the agency to consolidate its approach.
The divisions disclosed that they expect more requests to follow. Some of those requests are expected to ask for modifications to earlier no-action positions, accounting for changes to DCM designation orders, new DCOs entering the space, and other market developments.
The new framework covers all entities that previously received no-action letters on event contract data reporting. Those prior beneficiaries remain covered without needing to file again.
Entities that want to list or clear similar contracts going forward can request inclusion in the letter. If the divisions approve, the requester’s name gets added to an appendix attached to the CFTC letter.
The CFTC stated that the appendix approach ensures consistent treatment between new applicants and those that received earlier individual letters. Regulators described the goal as streamlining the process for addressing future requests.
Operators that fall outside the terms of the letter are not covered and cannot assume identical protection. The CFTC said entities in that position need to file a direct request to be added to the appendix.
