An exchange that sought to list futures contracts on National Football League games withdrew its proposal, halting—at least for now—an unusual effort to connect the growing world of sports betting with financial markets.
The exchange, ErisX, pulled its proposal just as the Commodity Futures Trading Commission faced a deadline to approve or disapprove it.
Information on ErisX’s decision to withdraw its planned NFL futures contracts was posted Tuesday on the CFTC’s website. An ErisX spokeswoman confirmed the exchange had withdrawn its proposal on Monday.
The CFTC had been poised to reject ErisX’s proposal on the grounds that it was contrary to the public interest, according to a person familiar with the matter. The agency believed that the proposed NFL futures could promote gambling and that ErisX hadn’t proven their ability to help firms hedge commercial risks, this person said.
In an interview, ErisX Chief Executive Thomas Chippas said the exchange intended to resubmit its proposal after further consulting with the sports-linked businesses that it hopes will use the new futures contracts as well as other industry players such as professional sports leagues.