CSA and CIRO clarify treatment of sports and entertainment event contracts in Canada
The Canadian Securities Administrators and the Canadian Investment Regulatory Organization issued joint guidance on contracts tied to sports and entertainment outcomes. The CSA said these contracts should not fall under Canadian securities and derivatives legislation, while CIRO said its dealer members should not facilitate or approve applications to trade them; two members may facilitate a limited set under specified conditions.
The guidance sets boundaries for securities dealers handling certain event contracts while retaining conditions on limited trading activity.