Overview
- The Division of Market Oversight’s Advisory (No. 26-08) directs DCMs to prioritize market integrity and robust contract design for event-based products.
- The guidance reiterates obligations under Core Principles 3, 4, and 12 and Regulation 180.1, requiring real-time monitoring and enforcement against manipulation and insider trading.
- The ANPRM poses wide-ranging questions on listing standards, position limits, abusive practices, margin, hedging purposes, and the scope of the special review for “war,” “terrorism,” “assassination,” or “gaming.”
- Sports-related markets face heightened scrutiny, with staff discouraging single-actor propositions or outcomes tied to injuries or officiating and urging league engagement, information-sharing, and use of official data.
- Interest has surged — DCM applications have more than doubled and annual event-contract listings reached roughly 1,600 in 2025 — and public comments are due by April 30 before a likely proposal.