U.S. CFTC warns of gaps in self-certification for event contract incentive programs

The U.S. Commodity Futures Trading Commission warned that designated contract markets are showing a growing number of deficiencies in self-certification filings for incentive programs tied to event contracts, including prediction market products. The CFTC’s Division of Market Oversight said the shortcomings have increasingly appeared in filings for programs that reward market-making, liquidity provision, and trading activity, particularly in event contract products. It added that when introducing or changing such programs, exchanges should fully disclose the terms and properly review compliance with CFTC rules.