CFTC warns prediction markets against sportsbook-style event contract odds

The Commodity Futures Trading Commission warned regulated entities that sportsbook-style American odds for event contracts may mislead users and could breach federal anti-manipulation rules. Its market oversight and market participants divisions said pricing should clearly reflect market-generated values, such as cents or implied probabilities, and that affiliates and intermediaries share the requirement. Exchanges, futures commission merchants and introducing brokers must acknowledge the letter by 31 August.