The CFTC Issues Advisory on Market Prediction, Emphasizes Platform Compliance with Regulatory Requirements

BlockBeats News, March 12, the U.S. Commodity Futures Trading Commission (CFTC) issued a Market Advisory regarding the listing of event contracts for trading. Given the rapid development of prediction markets, the Commission aims to encourage the growth and innovation of these markets, while reminding Designated Contract Markets (DCMs) of their regulatory obligations under the Commodity Exchange Act (CEA) and Commission regulations.

The Advisory emphasizes DCMs' regulatory responsibilities in complying with CEA Section 5(d), Part 38, DCM Core Principle 3 and Appendix C Guidance, as well as product submission requirements. Furthermore, it discusses some details that may be particularly applicable to sports event contracts.

The Division of Market Oversight believes that as frontline regulatory bodies, DCMs should proactively take steps to ensure that their markets continue to meet the requirements of the CEA and Commission regulations throughout the development process.