Prohibition on certain event contracts

Section 5c(c)(5) of the Commodity Exchange Act (7 U.S.C. 7a–2(c)(5)) is amended by adding at the end the following: (D) Prohibition on certain event contracts (i) In general Notwithstanding any other provision of this section, no agreement, contract, transaction, or swap involving any matter described in clause (ii) (or any index, measure, value, or data related thereto, or occurrence, extent of an occurrence, or contingency based thereon) may be listed or made available for clearing or trading on or through a registered entity. (ii) Matters described The matters referred to in clause (i) are— (I) any political election or contest; (II) subject to clause (iii), any action taken by the executive, legislative, or judicial branch of the United States; (III) any sporting event or contest; and (IV) any military action taken by the United States or any foreign country. (iii) Hedging The prohibition under clause (i) with respect to any matter described in clause (ii)(II) shall not apply to an agreement, contract, transaction, or swap that is used for hedging or mitigating commercial risk, as the Commission may determine by rule or regulation..