CFTC takes no-action position on recordkeeping regulations for event contracts
The position was officially taken by the Commission’s Division of Market Oversight and the Division of Clearing and Risk on September 3 following a request from QCX and QC Clearing.
Key Points
- The CFTC will not be recommended to initiate enforcement action against either company for failure to comply with swap-related recordkeeping requirements
- Congresswoman Dina Titus sent a letter to the CFTC to request an investigation into Commission Chair nominee Brian Quintenz due to his role on the Board of Kalshi
The Commodity Futures Trading Commission (CFTC)’s Division of Market Oversight and the Division of Clearing and Risk have officially taken a no-action position on possible violations of swap-related recordkeeping requirements and for failure to report to swap data repositories by QCX and QC Clearing House.
The CFTC will not be recommended to initiate enforcement action against either company for failure to comply with swap-related recordkeeping requirements and to report data associated with “binary option transactions” and “variable payout contract transactions.”
The action was taken by both divisions on September 3, as the request was first initiated by the designated contract market and derivatives clearing organization.
On August 5, Congresswoman Dina Titus sent a letter to the CFTC in the hopes of opening an investigation into Commission Chair nominee Brian Quintenz due to possible violations stemming from his role on the Board of Kalshi and stock options held in the company.
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Quintenz was President Donald Trump’s selection to lead the Commission, but has seen his nomination vote delayed on two separate occasions.
The Nevada representative requested all communications between the CFTC and Quintenz regarding prediction markets be released, including agency decision-making and possible attempts to direct individuals to speak with Quintenz through his private email.
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