CFTC Initiates Crackdown on Insider Trading and Manipulation in Prediction Markets
CFTC Initiates Crackdown on Insider Trading and Manipulation in Prediction Markets
The Commodity Futures Trading Commission (CFTC) is intensifying its focus on prediction markets, issuing an advisory for exchanges to enhance surveillance on event contracts. This move is coupled with the launch of a 45-day rulemaking process designed to specifically address concerns around insider information, market manipulation, and the broader public interest served by these markets.
On Mar. 12, the Commodity Futures Trading Commission (CFTC) issued a staff advisory telling exchanges to tighten surveillance on event contracts. Simultaneously, the regulator opened a 45-day rulemaking process that asks pointed questions about inside information, manipulation, and whether some markets serve the public interest at all. Two weeks earlier, the agency had spotlighted two […]