The Commodity Futures Trading Commission’s Division of Market Oversight today issued a prediction markets advisory regarding the listing for trading of event contracts. In light of the rapid rise in popularity of prediction markets, the division seeks to encourage growth and innovation in these markets while reminding designated contract markets of their regulatory obligations pursuant to the Commodity Exchange Act and Commission regulations. The advisory, among other things, underscores DCMs’ regulatory obligations with respect to CEA section 5(d) and Part 38, DCM Core Principle 3 and the Appendix C guidance, and ... (full story)