Commissioner Peirce Offers Commentary on Prediction Markets

On May 8, SEC Commissioner Hester Peirce presented remarks at the 13^th Annual Conference on Financial Markets Regulation that highlighted the growing focus on prediction markets, options trading and market-based forecasting tools in the financial industry.  In particular, Commissioner Peirce noted that prediction markets, in which participants buy and sell contracts related to the outcome of future events, have rapidly transitioned from a niche area to one that is receiving major market attention among economists, regulators and market participants.  Her remarks were timely, as the CFTC continues to assert exclusive federal jurisdiction over prediction markets, including in a Sixth Circuit Amicus Brief filed on May 12.

Click here for Commissioner Peirce’s Remarks at the Financial Markets Regulation Conference.  

Click here for the CFTC’s Affirmation of its Exclusive Jurisdiction Over Prediction Markets in Sixth Circuit Amicus Brief.