CFTC Requests Robinhood to Halt Sports Event Contract Availability

Robinhood Derivatives (RHD) recently received a formal request from the Commodity Futures Trading Commission (CFTC) to “not permit customers to access” sports event contracts, including those from the Pro Football Championship market. The company has agreed to comply with the CFTC’s request but will offer resolution options for customers who have placed trades.

RHD stated, “While we continue to work with the CFTC to understand their concerns, we are suspending the rollout of the Pro Football Championship market. We have rolled this product out to roughly 1% of our customers, and for those who already placed trades, we plan on providing the option to close their positions or take them to resolution.”

Advocating for Innovation

The company argues that clients should have access to these contracts. RHD commented, “Prohibiting event contracts unnecessarily stifles innovation and undermines consumer choice. The CFTC should withdraw this proposal to protect the principles of market-driven innovation and self-direction that have historically benefited investors and the broader financial system.”

Despite the suspension, RHD plans to continue working with the CFTC. The company aims to roll out a more comprehensive event contracts platform later this year.

“We are disappointed by this outcome, especially given that we had been in regular communication with the CFTC about our intent and plans to offer this product. We’ve also taken steps to advocate for balanced regulation in the futures and derivatives markets, including participating directly in a CFTC roundtable, providing written feedback to the CFTC, and generally championing the economic benefits of event contracts.”