Exits and FailuresBrief
CFTC instructs prediction markets Novig and ProphetX to halt specific contracts
US regulators ordered Novig and ProphetX to pause plans for micro and scorigami sports contracts until they explain their compliance with federal laws.
FTMQ Startups, written by our newsroom0 views
The Commodity Futures Trading Commission told prediction market operators Novig and ProphetX not to list self-certified micro and scorigami sports contracts, ReadWrite and Yahoo Finance reported. The federal regulator ordered both platforms to explain how these proposed contracts would comply with federal commodities legislation. [1][2]
A spokesperson for the Commodity Futures Trading Commission confirmed that official letters were dispatched to both companies, ReadWrite reported. The regulatory authority stated that any derivatives contract provided by a regulated exchange must maintain full compliance with the Commodity Exchange Act. [1]
The intervention targets products that both prediction exchanges had previously self-certified, according to Front Office Sports as reported by ReadWrite. The regulator halted the launch plans despite those earlier self-certification filings by the companies. [1]
In short
- The CFTC ordered Novig and ProphetX to halt listings of self-certified micro and scorigami sports contracts.
- Regulators required both companies to demonstrate compliance with federal commodities laws.
- A spokesperson for the CFTC confirmed that formal letters were sent to both sports prediction platforms.
Sources
Every paragraph above points to the numbered items it rests on. Read the originals here.
- [1]CFTC Tells Novig and ProphetX to Hold Back Micro and Scorigami ContractsReadWrite, 15h ago (the report this story comes from)
- [2]Novig, ProphetX Told to Pause Scorigami, Micro Contract PlansYahoo Finance, 2d ago
Background
- [3]AMD on Wikipedia
- [4]Vance Joseph on Wikipedia
Our newsroom writes these reports with the help of software, from the 4 sources listed and nothing else, and checks them against those sources. Facts can still be wrong or move on; the originals are the record. Spotted a mistake? Write to daniel@monsterkong.com.
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