The Commodity Futures Trading Commission (CFTC) addressed sports event contracts for the first time in a new letter in which the commission notes that it has still not made a decision about whether the contracts are a prohibited product.
The letter, published Tuesday evening, was addressed to Futures Commission Merchants (FCMs), Introducing Brokers (IBs), Designated Contract Markets (DCMs), Derivatives Clearing Organizations (DCOs), and Registered Futures Associations (RFAs).
In the world of sports event contracts, DCMs — exchanges that create and host markets, such as Kalshi — and FCMs — organizations like Robinhood that allow their users to access markets offered by a DCM — are the most relevant players.
