The Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) published guidance reminding firms and investors that trading in, or facilitating trading in, prediction market event contracts that are securities or derivatives is subject to Canadian securities and derivatives requirements, including registration or recognition obligations. They also warned that non-compliance may result in enforcement action. Prediction markets were described as platforms for trading event contracts that pay out based on future outcomes. The notice highlights that, in some CSA jurisdictions, Multilateral Instrument 91-102 Prohibition of Binary Options bans advertising, offering, selling or otherwise trading a binary option with a term to maturity of less than 30 days with or to an individual. CIRO’s March 26, 2026 bulletin on event contracts notes that 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 terms and conditions (developed in consultation with CSA members) governing product types and trading practices; these terms remain under review and may change. While CIRO members may facilitate access to event contracts on non-Canadian markets, no prediction market has been recognized as an exchange or registered as a dealer (or exempted) by the CSA. The CSA and CIRO said they will continue to monitor developments, expect to issue further guidance on how securities or derivatives legislation applies to prediction markets and event contracts, and will consider whether additional regulatory action is needed, including changes to the terms and conditions set out in the CIRO bulletin.
Canadian Investment Regulatory Organization 2026-04-02
Canadian Investment Regulatory Organization and Canadian Securities Administrators outline regulatory requirements for prediction markets and event contracts
The Canadian Securities Administrators and the Canadian Investment Regulatory Organization reminded firms and investors that trading in, or facilitating trading in, prediction market event contracts that are securities or derivatives is subject to Canadian securities and derivatives requirements, including registration or recognition obligations, and that non-compliance may lead to enforcement action. Certain short-term binary options remain prohibited in some jurisdictions. Only two CIRO members are authorized to facilitate Canadian client access to event contracts under specific terms and conditions, and no prediction market has been recognized as an exchange or registered as a dealer. The authorities will continue monitoring prediction markets, may issue further guidance, and may adjust existing terms and conditions or take additional regulatory action.