I defined a new custom event in the event catalog. However I cannot see the event in the workflow designer. Why? Did I miss a step?

You will need to restart WebSphere by logging onto CE server and executing command: restart WebSphere

The WebSphere restart should take about 30 seconds to a minute. After restart, launch Collaboration Designer and you should see custom event listed. Another alternative to WebSphere restart is to re-install CollabDesigner/WFE snap-in.

In future release the addition of custom event and update to Designer will occur on the fly.

Thanks Dipesh!