The Alberta Securities Commission published a notice drawing attention to joint guidance from the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) on prediction markets and “event contracts”. The guidance reminds firms and investors that trading in, or facilitating trading of, event contracts that are securities or derivatives must comply with applicable Canadian securities or derivatives requirements, including registration or recognition obligations, and that non-compliance may result in enforcement action. The notice highlights that some CSA jurisdictions prohibit advertising, offering, selling or otherwise trading binary options with a term to maturity of less than 30 days to individuals under Multilateral Instrument 91-102 Prohibition of Binary Options. It also references CIRO’s March 26, 2026 bulletin on applying CIRO requirements to event contracts, under which two CIRO members have been authorized to facilitate Canadian client access to event contracts, including contracts executed on foreign regulated prediction markets, subject to CIRO-imposed terms and conditions developed in consultation with CSA members. No prediction market has been recognized by the CSA as an exchange or registered as a dealer, or exempted from those requirements. The CSA and CIRO are continuing to monitor developments and intend to issue further guidance, while also considering whether additional regulatory action is needed, including changes to the CIRO terms and conditions. Industry participants considering trading in, or facilitating trading of, event contracts with Canadian investors are directed to contact their local CSA member and CIRO before doing so.
Alberta Securities Commission 2026-04-02
Alberta Securities Commission circulates CSA and CIRO guidance on compliance requirements for prediction markets and event contracts
The Alberta Securities Commission highlighted joint guidance from the Canadian Securities Administrators and the Canadian Investment Regulatory Organization on prediction markets and “event contracts,” reminding firms and investors that contracts that are securities or derivatives must comply with Canadian requirements, including registration or recognition, and that non-compliance may lead to enforcement action. The notice underscores prohibitions on certain short-term binary options and clarifies that no prediction market has been recognized or registered.