The Commodity Futures Trading Commission’s Division of Market Oversight issued an advisory on July 24 reminding designated contract markets how to properly submit self-certifications for a series of event contracts, targeting the practice of filing broad, template-style certifications that combine many potential contract variations into a single submission.

The advisory, released as Staff Letter 26-22, said that approach limits the division’s ability to determine whether an exchange has provided the information, explanation and analysis required under 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. The guidance reiterates that broad, template-style certifications should not be submitted, and explains when closely related event contracts may instead be certified as a class or submitted for approval under Regulations 40.2(d) or 40.3.

This story is an excerpt from the Unchained Daily newsletter.

Self-certification is the mechanism that lets most event contracts reach the market quickly, with an exchange filing and listing without waiting for affirmative approval.

In June the agency proposed its first formal prediction-markets rule, establishing a framework for determining whether a contract touches activity enumerated in Section 5c(c)(5)(C) of the Commodity Exchange Act, including terrorism, assassination, war and gaming.

Kalshi and Polymarket have both posted record volumes this year, and brokerages including Robinhood and Charles Schwab have moved into event contracts.

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