The U.S. Commodity Futures Trading Commission (CFTC) has warned prediction market operators that certain trading incentive and market-maker programs could increase the risk of market manipulation and other prohibited activity. In guidance issued Wednesday, the derivatives regulator said it has seen a rise in filings from designated contract markets (DCMs) seeking to introduce incentive programs designed to attract high-volume traders and boost liquidity. However, the CFTC said many submissions have been procedurally or substantively deficient, making it difficult for regulators to determine… Read more





