Case: 25-7187, 02/17/2026, DktEntry: 37.2, Page 24 of 41
ARGUMENT
I. Event Contracts Trading on CFTC-Regulated Markets Is Subject to the CFTC’s Exclusive Jurisdiction. A. Under the Plain Language of CEA Section 1(a)(47), Event Contracts Are “Swaps.” After Dodd-Frank, the statutory definition of “swap” is deliberately broad. As such, it encompasses event contracts within multiple sub-definitions of CEA § 1a(47)(A). CEA § 1a(47)(A)(i) defines the term “swap,” in relevant part, to include “any agreement, contract, or transaction . . . that is a[n] . . . option of any kind that is for the purchase or sale, or based on the value, of 1 or more . . . quantitative measures, or other financial or economic interests or property of any kind,” and CEA § 1a(47)(A)(ii) defines swap to include “any agreement, contract, or transaction . . . that provides for any purchase, sale, payment, or delivery . . . that is dependent on the occurrence, nonoccurrence, or the extent of the occurrence of an event or contingency associated with a potential financial, economic, or commercial consequence.” 7 Congress’s use of the word “any” in multiple sub-definitions of § 1a(47) confirms the statute’s breadth. Ali v. Fed. Bureau of Prisons , 552 U.S. 214, 218–19 (2008) (observing that the word “any,” read naturally carries an expansive
7 See also §§ 1a(47)(A)(iv) (including transactions “commonly known to the trade as swaps”) and (vi) (“any combination or permutation of, or option on, any agreement, contract, or transaction described in any of clauses (i) through (v)”).
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