Agreements referred to as “mention market” contracts present “a heightened risk of manipulation,” warns the Commodity Futures Trading Commission’s (CFTC’s) Division of Market Oversight. This is due to the fact that their settlement “turns on the discrete conduct on a person that may be neither independently generated nor externally verifiable.”
CFTC notes risk in new staff advisory on mention markets
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The CFTC encouraged exchanges to engage with its market oversight division while in the early phases of this mention market review to mitigate manipulation risks.