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CFTC: Yes, we can police prediction market insider trading

CFTC building
Photo: JHVEPhoto/Getty Images

The CFTC asserts itself in previously murky regulatory waters.

Whether acting on inside information is actionable has long been called a gray area in event market contracts. Finally, the CFTC’s Division of Enforcement is taking an official stance on the issue.

In an advisory release, the CFTC cited two internal disciplinary cases conducted by the CFTC-registered Designated Contract Market