U.S. CFTC Releases Advisory Opinion on Prediction Markets, Emphasizing Trading Platform Compliance Requirements



According to the CFTC website, the U.S. Commodity Futures Trading Commission (CFTC) has released an advisory opinion on prediction markets, covering the listing and trading of event contracts. Given the rapid development of prediction markets, the division aims to encourage growth and innovation in these markets while reminding Designated Contract Markets (DCMs) to fulfill their regulatory obligations under the Commodity Exchange Act (CEA) and Commission regulations.

The advisory opinion emphasizes DCMs' regulatory responsibilities regarding compliance with CEA Section 5(d), 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 Regulation Division believes that as frontline regulators, DCMs should proactively take measures to ensure their markets continue to comply with the CEA and Commission regulations throughout their development.
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