The CFTC began a review of RSBIX NFL futures contracts (the "Contracts") proposed by Eris Exchange, LLC ("ErisX").
ErisX self-certified three Contracts: one based on the "moneyline"; the second on the point spread; and the third on total points for individual NFL games. Previously, the CFTC determined that the Contracts may "involve, relate to, or reference" an activity restricted in Regulation 40.11(a)(1), including potentially "gaming."
The CFTC opened the matter for 30-day public comment and issued a specific list of questions for commenters' responses. The comment period closes on January 28, 2021.
The CFTC has 90 days, or longer as agreed to or requested by ErisX, to review the Contracts. The CFTC requested that ErisX refrain from listing and trading its proposed Contracts during the review period.
Commentary
The early South Wacker line on this is that you have to bet $60 on rejection to win $40 with a spread of 1.5 Commissioners. The over/under for a CFTC decision is 114 calendar days.
Exotic bets are also available, including which happens first: Jets win the AFC or contract approval?
Primary Sources
- CFTC Press Release: Agency Announces Review of RSBIX NFL Futures Contracts Proposed by Eris Exchange, LLC
- CFTC: Letter to ErisX
- CFTC: Questions Related to RSBIX NFL Futures Contracts
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