U.S. CFTC Issues Guidance on Prediction Markets, Emphasizing Compliance Requirements for Trading Platforms
According to the CFTC website, the U.S. Commodity Futures Trading Commission (CFTC) has issued guidance on prediction markets, concerning the listing and trading of event contracts. Given the rapid development of prediction markets, the division aims to encourage the growth and innovation of these markets while reminding Designated Contract Markets (DCMs) to fulfill their regulatory obligations under the Commodity Exchange Act (CEA) and Commission regulations.
The guidance emphasizes the regulatory responsibilities of DCMs in complying with Section 5(d) of the CEA, Part 38, DCM Core Principle 3 and Appendix C guidelines, as well as product submission requirements. It also discusses certain details that may be particularly applicable to sports event contracts.
The Market Surveillance Division believes that as frontline regulators, DCMs should proactively take measures to ensure their markets continuously comply with the requirements of the CEA and Commission regulations during their development.
U.S. CFTC Issues Guidance on Prediction Markets, Emphasizing Compliance Requirements for Trading Platforms
According to the CFTC website, the U.S. Commodity Futures Trading Commission (CFTC) has issued guidance on prediction markets, concerning the listing and trading of event contracts. Given the rapid development of prediction markets, the division aims to encourage the growth and innovation of these markets while reminding Designated Contract Markets (DCMs) to fulfill their regulatory obligations under the Commodity Exchange Act (CEA) and Commission regulations.
The guidance emphasizes the regulatory responsibilities of DCMs in complying with Section 5(d) of the CEA, Part 38, DCM Core Principle 3 and Appendix C guidelines, as well as product submission requirements. It also discusses certain details that may be particularly applicable to sports event contracts.
The Market Surveillance Division believes that as frontline regulators, DCMs should proactively take measures to ensure their markets continuously comply with the requirements of the CEA and Commission regulations during their development.