The Commodity Futures Trading Commission (CFTC) and the National Basketball Association (NBA) have signed a memorandum of understanding to coordinate on risks to professional basketball and related prediction markets. The agreement establishes a framework for discussions and information sharing to address integrity concerns, including insider trading and fraud. Cooperation will primarily involve ongoing informal consultations, periodic meetings and exchanges of information on request. Information sharing remains at each party’s discretion. The memorandum creates no legally binding rights or obligations and leaves the CFTC’s enforcement authority unchanged. Information exchanged under the agreement is presumed confidential unless the provider specifies otherwise in writing. The CFTC may use NBA information only for its statutory functions under the Commodity Exchange Act, while the NBA may use CFTC information only to protect basketball integrity and public confidence in the league. The NBA may disclose CFTC information to members of its Board of Governors, but sharing with other NBA members or teams requires the CFTC’s written authorization.
United States Commodity Futures Trading Commission signs information sharing agreement with National Basketball Association on prediction market integrity
The Commodity Futures Trading Commission and National Basketball Association have signed an agreement to exchange information on threats to basketball integrity and related prediction markets, including insider trading and fraud. The nonbinding framework leaves information sharing voluntary and sets confidentiality protections and limits on how exchanged information may be used and disclosed.