Commodity Futures Trading Commission December 27, 2023 – Federal Register Recent Federal Regulation Documents

The Commodity Futures Trading Commission (the ``Commission'' or ``CFTC'') is issuing for public comment this proposed guidance regarding the listing for trading of voluntary carbon credit (``VCC'') derivative contracts. Specifically, the Commission is proposing to issue guidance to outline factors that designated contract markets (``DCMs'') should consider when addressing certain provisions of the Commodity Exchange Act (``CEA''), and CFTC regulations thereunder, that are relevant to the listing for trading of VCC derivative contracts. The Commission recognizes that VCC derivatives are a comparatively new and evolving class of products, and believes that guidance that outlines factors for a DCM to consider in connection with product design and listing may help to advance the standardization of such products in a manner that promotes transparency and liquidity. The Commission requests comment on this proposed guidance and further invites comment on specific questions related to the listing for trading of VCC derivative contracts.