Statement on the Commission’s Approval of a Designated Contract Market’s Listing of a Key Performance Indicator Contract | CFTC - Commodity Futures Trading Commission | CFTC (.gov)

WASHINGTON — The Commodity Futures Trading Commission (CFTC) announced the official approval of a designated contract market's application to list a novel key performance indicator (KPI) contract for trading.

CFTC Approves Cash-Settled Binary Swap

The regulatory decision, finalized following a review under Commission Regulation 40.3, greenlights a cash-settled, binary outcome contract structured as a swap under the Commodity Exchange Act (CEA). Under the approval, the KPI contract will be listed and traded on a designated contract market (DCM) and cleared via a registered derivatives clearing organization, subjecting it fully to CEA protections, commission regulations, and DCM Core Principles.

The agency clarified that the order applies strictly to the listed KPI contract and similar event contracts detailed in the submission when structured for DCM compliance. The ruling does not extend to differently structured products utilizing the same underlying metrics, nor does it foreclose potential jurisdiction by the Securities and Exchange Commission (SEC).

Highlighting a collaborative milestone, officials pointed to a shared alignment with SEC leadership to resolve historical jurisdictional overlaps. The cooperative approach aims to reduce past regulatory barriers, encourage financial innovation, and expand lawful choices for market participants.