CFTC Enforcement Division Issues Advisory On Prediction Market Trading Practices

On February 25, 2026, the U.S. Commodity Futures Trading Commission (“CFTC”) Division of Enforcement released an advisory, reminding market participants of the agency’s authority to pursue misuse of material nonpublic information to trade, and other forms of market abuse, in the nascent prediction markets (the “Advisory”). The Advisory follows the public release of two enforcement actions against traders on a U.S. predication market trading platform.... By: A&O Shearman