The Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) have clarified that trading, or facilitating trading, in event contracts that are securities or derivatives must comply with applicable registration, recognition and other requirements. Noncompliance may result in enforcement action, and certain CSA jurisdictions prohibit offering or trading binary options with maturities of less than 30 days to individuals. Two CIRO members are currently authorized, subject to product and trading conditions, to facilitate Canadian clients’ access to event contracts, including contracts on regulated foreign prediction markets. However, no prediction market has been recognized as an exchange, registered as a dealer or exempted from those requirements by the CSA. The regulators will continue reviewing the conditions applying to CIRO members and intend to issue further guidance on how securities and derivatives laws apply. They may also take additional regulatory action, including changing the existing conditions.
2026-04-02Canadian Securities Administrators
Canadian Securities Administrators and Canadian Investment Regulatory Organization clarify requirements for prediction markets and event contracts
The CSA and CIRO clarified that event contracts classified as securities or derivatives are subject to applicable registration, recognition and trading requirements, with breaches potentially leading to enforcement. Two CIRO members may facilitate Canadian client access under specific conditions, but no prediction market has been recognized, registered or exempted by the CSA. Further guidance and possible regulatory action are planned.