CFTC to Review RSBIX NFL Futures Contracts Proposed by Eris Exchange

The Commodity Futures Trading Commission (CFTC) announced that it has initiated a review, pursuant to CFTC Regulation 40.11(c), of RSBIX NFL futures contracts self-certified by Eris Exchange, LLC (ErisX), a U.S. futures exchange registered as a Designated Contract Market (DCM), on December 15, 2020. 

In the United States, prior to listing new contracts, the Commodity Exchange Act (CEA) provides designated contract markets (DCMs) with the option to either: 

· submit a written self-certification to the CFTC that the contract complies with the CEA and CFTC regulations, or 

· voluntarily submit the contract for Commission approval. 

When a DCM self-certifies a new contract it must determine that the offering complies with the CEA and Commission regulations, including that the new contract is not readily susceptible to manipulation. This is the same standard the CFTC uses when reviewing products for approval. 

ErisX self-certified three RSBIX NFL futures contracts: one based on the moneyline; the second on the point spread; and the third on total points for individual NFL games. Beginning on 23 December 2020, the CFTC has 90 days—or longer as agreed to or requested by ErisX—to review and make a determination with respect to the submissions.

The review follows a Commission determination that the RSBIX NFL futures contracts "may involve, relate to, or reference" an activity enumerated in Regulation 40.11(a)(1), including but not limited to "gaming, or an activity that is unlawful under any State or Federal law." Accordingly, and pursuant to Regulation 40.11(c)(1), the CFTC has requested that ErisX refrain from listing and trading its proposed RSBIX NFL futures contracts during the pendency of the review period.

The CFTC will also open a 30-day public comment period on specific questions related to the RSBIX NFL futures contracts to help inform its review. The public comment period opens on December 28, 2020 and closes on January 28, 2021.