US Senator Richard Blumenthal introduced the Prediction Markets Security and Integrity Act, according to the available report. The text provides no further details about the bill’s provisions or its legislative status.
The bill raises uncertainty about whether prediction markets would fall under the Commodity Exchange Act.
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Sporttrade announced that it received Designated Contract Market and Derivatives Clearing Organization registrations from the CFTC on Tuesday. The company plans to introduce exchange and clearing services in phases, initially serving selected flow and liquidity providers; Fliff plans to route trades through the exchange if it receives regulatory approval.
DraftKings chief executive Jason Robins said the company’s exchange ranked third by trading value for the week ended Oct. 18. Aldrin Research data cited in the report put its volume at $1.04 billion and market share at 3.57%.
It was reported that Novig launched its sports prediction-market exchange in 47 states on 4 August. The business had obtained CFTC designated contract market registration in June.
Fanatics said on 27 July it will acquire Water Street Labs and CX Clearinghouse from BGC Group to launch its own prediction market exchange. The company said Water Street Labs is a CFTC-registered contract market and CX Clearinghouse a derivatives clearing organization. Financial terms were not disclosed.
Fanatics and BGC Group said they agreed that Fanatics would acquire Water Street Labs, a CFTC-registered Designated Contract Market, and CX Clearinghouse, a CFTC-registered Derivatives Clearing Organization. Fanatics said the deal would let it operate its own federally regulated prediction-market exchange and expand contracts on Fanatics Markets; the companies also plan to develop market-data products together.