The Commodity Futures Trading Commission’s Division of Market Oversight today issued an advisory reminding designated contract markets about the proper procedures for submitting self-certifications of an event contract series.
The advisory addresses concerns about the practice of submitting broad, template-style certifications that combine many potential event contract variations into a single certification.
As detailed in the advisory, this approach limits DMO’s ability to determine whether a DCM has provided all the information, explanation, and analysis required by Commission Regulation § 40.2, and whether it 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. It also explains when closely related event contracts may be certified as a class or submitted for approval under Commission Regulations §§ 40.2(d) or 40.3.
