Listing Procedures

CFTC Regulation 40.2, 17 CFR 40.2, permits designated contract markets (DCMs) to list products for trading without prior CFTC approval by filing a written self-certification with the CFTC.

Timing of the Self-Certification Submission
To self-certify a new product, a DCM must file its submission with the CFTC no later than the close of business on the Commission’s business day preceding the Commission’s business day of the initial listing (or re-listing in the case of dormant contracts) of the product.

Where to File Notification
Self-certification filings must be sent to the CFTC either via mail to its Washington, DC headquarters office and to the CFTC regional office having local jurisdiction or electronically via email to submissions@cftc.gov.

A product self-certification submission should include:

• A copy of the submission cover sheet;
• A statement that the filing is made pursuant to CFTC Regulation 40.2;
• The text of the product’s rules, including those relating to terms and conditions;
• A certification that the product or instrument complies with the Commodity Exchange Act (CEA) and CFTC regulations thereunder;
• A concise explanation and analysis of the product and its compliance with applicable provisions of the Act, including core principles, and the Commission’s regulations thereunder. This explanation and analysis shall either be accompanied by the documentation relied upon to establish the basis for compliance with applicable law, or incorporate information contained in such documentation, with appropriate citations to data sources.
• A certification that the DCM posted a notice of pending product certification with the Commission on the DCM’s website.

In making a self-certification submission, a DCM certifies that the product does not violate any provision of the CEA or the CFTC’s regulations and policies adopted thereunder.

Guideline No. 1, Appendix A to Part 40 of the CFTC’s regulations, contains the applicable economic requirements for rules related to the terms and conditions of a contract. Guideline No. 1 also provides exchanges with specific criteria for initial and continued compliance with the CEA and the CFTC's regulations and policies for products listed on regulated entities.

The listing of security futures products (SFPs) is subject to additional requirements and procedures.

DCMs may voluntarily request CFTC approval of a new product. The new product may be listed prior to approval if it also is filed with the CFTC under the self-certification procedures described above. Approval requests for contracts filed under self-certification procedures may be submitted concurrently with a self-certification filing or at any time thereafter, including after initial listing of the product. A request for approval must be accompanied with the appropriate approval filing fee.

Summary of the Procedure for Filing Requests for Approval
Voluntary requests for product approval must be sent to the CFTC either via mail to its Washington, DC headquarters office and to the CFTC regional office having local jurisdiction or electronically via email to submissions@cftc.gov.

A product request for approval filing must include:

• A copy of the submission cover sheet;
• The text of the product’s rules, including those relating to terms and conditions;
• An explanation and analysis of the product and its compliance with applicable provisions of the Act, including core principles, and the Commission’s regulations thereunder, including Guideline No. 1. This explanation and analysis shall either be accompanied by the documentation relied upon to establish the basis for compliance with applicable law, or incorporate information contained in such documentation, with appropriate citations to data sources;
• A description of any agreements or contracts entered into with other parties that enable the DCM to carry out its responsibilities;
• A certification that the DCM posted a notice of pending product certification with the Commission on the DCM’s website.

Guideline No. 1, Appendix A to Part 40 of the CFTC’s regulations, contains the applicable economic requirements for rules related to the terms and conditions of a contract. Guideline No. 1 also provides exchanges with specific criteria for initial and continued compliance with the CEA and the CFTC's regulations and policies for products listed on regulated entities.

Timing of Approval
All products submitted for Commission approval are deemed approved by the Commission 45 days after receipt by the Commission or at the conclusion of an extended period if:

• The submission complies with the requirements of CFTC Regulation 40.3(a);
• The submitting entity does not amend the terms or conditions of the product or supplement the request for approval, except as requested by the Commission or for non-substantive revisions, during the review period.

The Commission may extend the 45-day review period for an additional 45 days if the product raises novel or complex issues that require additional time for review or is of major economic significance.

Section 5c(c) of the CEA, 7 USC 7a-2(c), requires the CFTC to approve any such new contract unless the CFTC finds that the new product would violate the CEA. In addition, the CEA requires the CFTC to take final action on an approval request no later than 90 days after the filing is received by the CFTC unless the person making the filing agrees to an extension of the review period.

Questions about procedures for product self-certification and approval may be asked by email to submissions@cftc.gov, fax to 202-418-5527, or telephone to 202-418-5270.