RegulatoryCFTC
CFTC proposal names “settlement integrity deficits” among reasons a contract may be contrary to the public interest
What happened. The CFTC proposed amendments to Rule 40.11, which governs event contracts that involve enumerated activities. Among the factors that could make a contract contrary to the public interest, the proposal lists settlement integrity deficits, such as a lack of clear and objective resolution criteria.
Why it matters. Regulated venues are likely to write more explicit carve-outs and evidentiary standards. Offshore venues are not bound by the proposal, so drafting differences between contracts on the same question may widen before they narrow.
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Related research: Same Question, Different Contract