The Commodity Futures Trading Commission’s Division of Market Oversight issued an advisory setting out the limited circumstances in which designated contract markets may list event contracts tied to whether an individual says certain words, attends an event or interacts with another person. These “mention market” contracts pose heightened manipulation risks because settlement depends on discrete personal conduct that may not be independently generated or externally verifiable. The advisory provides non-exhaustive factors for exchanges to consider when designing and submitting these contracts under Commission Regulations 40.2 or 40.3. It also reminds designated contract markets that Core Principle 3 permits only contracts that are not readily susceptible to manipulation and calls for complete, contract-specific analysis in Part 40 submissions. The guidance adds product-level detail as the commission develops its broader approach to prediction markets.
2026-09-22Commodity Futures Trading Commission
US Commodity Futures Trading Commission restricts listing of mention market contracts over manipulation risks
The Commodity Futures Trading Commission issued guidance limiting when designated contract markets may list “mention market” contracts tied to an individual’s words, appearances or interactions. Exchanges must address the products’ heightened manipulation risks and provide complete, contract-specific analysis in Part 40 submissions.