Financial Derivatives
2 articles tagged "Financial Derivatives".
CFTC Warns Prediction Markets Against American-Style Odds
The CFTC has warned prediction market operators against using American-style betting odds, saying event contracts must be priced in nominal or percentage terms. The warning comes amid ongoing court battles and separate New York legal actions against Kalshi and Novig.
ESMA Classifies Some Prediction Markets Under Financial Derivative Restrictions
The European Securities and Markets Authority (ESMA) has clarified that some prediction market products, especially binary yes-or-no contracts with fixed payouts, are considered restricted financial derivatives under MiFID II and subject to retail sales bans. This stance, addressing the growing sector for the first time, emphasizes consumer protection and has led to regulatory actions against several platforms across Europe.