CFTC Drops Swap Reporting Duties for Prediction Market Operators Across the US

"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."

"The two divisions said they will not recommend enforcement action against designated contract markets, derivatives clearing organizations, or their participants for failing to report event contract transaction data to swap data repositories. The no-action relief also covers recordkeeping requirements that would otherwise apply under existing swap regulations. The CFTC made clear the position applies only within the terms outlined in the letter issued May 13."

"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. By issuing a single blanket position, the commodities and derivatives regulator aims to reduce administrative burden on both regulators and market participants."

"The structure removes the need for the agency to issue repetitive individual letters each time a new entity seeks the same relief. The new framework covers all entities that previously received no-action letters on event contract data reporting. Those prior beneficiaries remain co"

A blanket no-action position issued May 13, 2026 provides relief for all swap data reporting related to event contracts. The relief covers designated contract markets, derivatives clearing organizations, and their participants, and it also extends to recordkeeping requirements that would otherwise apply under existing swap regulations. The CFTC states it will not recommend enforcement action for failure to report event contract transaction data to swap data repositories when parties operate within the letter’s terms. The position is intended to reduce compliance costs and administrative burden by consolidating relief that had previously been sought through multiple individual requests. The CFTC expects additional requests, including requests to modify earlier positions due to designation changes and new clearing organizations.

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