CFTC warns prediction markets again over template self-certifications

The U.S. Commodity Futures Trading Commission has issued a second warning this year to prediction-market operators over broad, template-style self-certifications for event contracts. Summary CFTC told prediction markets that template certifications cannot replace contract-specific terms, analysis, and compliance reviews. The July advisory follows a March warning as event-contract listings and trading activity continue expanding. Proposed rules would apply a three-step public-interest review to gaming, war, terrorism, and assassination contracts. The agency’s Division of Market Oversight said registered exchanges must provide the terms, settlement method, data sources and compliance analysis for each contract they plan to list. Meanwhile, the July 24 advisory does not remove the self-certification route. Designated contract markets can still list event contracts without waiting for prior Commission approval when they meet the Commodity Exchange Act and CFTC rules. However, the agency said one filing cannot cover an open-ended set of possible contract variations without enough product-level detail. CFTC rejects cookie-cutter event-contract filings The CFTC said some exchanges had sub...