Case: 25-7187, 02/17/2026, DktEntry: 37.2, Page 28 of 41
safeguard market integrity within the financial system. See Further Definition of “Swap”, “Security-Based Swap”, and “Security-Based Swap Agreement”; Mixed Swaps; Security Based-Swap Agreement Recordkeeping, 77 Fed. Reg. 48208, 48209 (Aug. 13, 2012). The CFTC has treated event contracts as measuring the level of the outcome of an event for nearly two decades. 12 Moreover, Congress deliberately adopted an expansive definition of “swap” following the 2008 financial crisis to ensure a comprehensive regulatory oversight of derivatives markets. See 156 Cong. Rec. S5923 (daily ed. July 15, 2010) (Statement of Sen. Lincoln) (“Section 721 includes a broad and expansive definition of the term ‘swap’ that is subject to the new regulatory regime established in Title VII.”). Nothing in the statutory text or legislative history suggests that the occurrence of an event, or extent of its occurrence, excludes an event’s outcome. The swap definition is written broadly to capture contracts that shift risk based on uncertain future developments. Event contracts do exactly that.
12 See Concept Release on the Appropriate Regulatory Treatment of Event Contracts, 73 Fed. Reg. 25669, 25671 (May 7, 2008).
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