ErisX has withdrawn the RSBIX NFL futures contracts from consideration, which were originally submitted for certification to the Commodity Futures Trading Commission in December 2020. A 30-day comment period that commenced on December 28, 2020 brought public comments which were mostly supportive, although some comments indicated contrary views or requested additional consideration by the CFTC.
We believe in these products, and the legal and economic analysis that underpins their viability, and want to give these products the best chance at coming to market. The utility of the RSBIX sports futures contracts for the industry is apparent and is supported by multiple comment letters from sports book operators, among others. These operators are solely interested in the contracts for hedging purposes. Additional time to educate a wider and growing audience of potential users will only serve to strengthen the base of support for these products.
The RSBIX sports futures contracts are the first of their kind and symbolize growth for the futures industry. Providing the ability to hedge risk will allow this burgeoning US industry to grow — yet another example of the futures markets enabling the growth of the US economy. Innovation in a regulated environment has various costs: time, legal expenses, and opportunity cost. ErisX worked 12 months with regulators before filing the self-certification documents for the RSBIX NFL futures contracts; including obtaining opinion letters from law firms and economic studies from respected economists. As with most regulatory processes, even with a strong case it can be difficult to predict results and only by filing can the necessary process be undertaken to reach a definitive conclusion.
We understand and appreciate the time the CFTC took to review the proposed contract listing. Our goal was and still is to collaborate with regulators and industry players. Sometimes that means taking a step back before progress can happen.
We support our partner RSBIX in bringing these contracts to market to help licensed sportsbooks and sports-related entities to manage their economic risk. We look forward to further engagement with CFTC staff and the possibility of submitting the contracts for reconsideration at a later time.