Title: 26-22
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Description
Staff of the Division of Market Oversight (DMO) of the Commodity Futures Trading Commission (CFTC) are issuing this advisory to remind designated contract markets (DCMs) of the proper procedures for submitting self certifications of an event contract series. The advisory addresses the practice of submitting broad, template style certifications that combine many potential event contract permutations into a single, vague certification. This practice limits DMO’s ability to determine whether a DCM has supplied all of the information, explanation, and analysis required by Commission Regulation §?40.2 and has adequately evaluated the settlement methodology, data sources, and core-principles compliance of any contract it intends to list on the DCM. The guidance reiterates that broad, template-style certifications should not be submitted under Commission Regulation §?40.2(a) and explains when closely related event contracts may appropriately be certified as a class or submitted for approval under Commission Regulations §§?40.2(d) or 40.3.