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U.S. CFTC Issues Advisory Opinion on Prediction Markets, Emphasizing Trading Platform Compliance Requirements
According to the CFTC official website, the U.S. Commodity Futures Trading Commission (CFTC) has issued an advisory opinion on prediction markets, involving 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 in accordance with the Commodity Exchange Act (CEA) and the Commission's regulations.
The advisory opinion emphasizes the regulatory responsibilities of DCMs in complying with CEA Section 5(d), Part 38, DCM Core Principle 3 and Appendix C guidance, 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 that their markets continue to comply with the requirements of the CEA and the Commission's regulations during their development.