Event Contract Enforcement Act

Exchanges can't list event-based contracts

This bill would make it unlawful for a registered entity to list or make available for trading any agreement, contract, transaction, or swap in an excluded commodity that is based on an occurrence, the extent of an occurrence, or a contingency. It would not apply to contracts based only on a commodity's price, rate, value, or level as described in current law. Covered subjects would include unlawful activity, terrorism, assassination, war, gaming, the result of any vote in an election (including ballot initiatives and referenda), and conduct by federal, state, or local governments or their personnel. The bill would define gaming as any part of a live, simulated, or virtual physical or mental challenge or game of chance, but a State could exempt gaming conduct for itself only if State law expressly provides that exemption. The prohibition would take effect 180 days after enactment, and the Commission could add other similar activities by rule if it finds them contrary to the public interest.