CFTC issues staff advisory on Mention Markets, citing heightened manipulation risk

  • CFTC warned regulated entities about manipulation risks in Mention Markets.
  • Mention Markets predict words used in speeches, earnings calls or television broadcasts.
  • CNBC reported in August that CFTC was reviewing Mention Markets internally.

The CFTC sent a letter to some regulated entities on Tuesday warning that Mention Markets carry a heightened risk of manipulation. These contracts ask traders to predict specific words used in a speech, corporate earnings call or television broadcast, and their settlement can depend on conduct that may not be independently generated or externally verifiable. The regulator also outlined considerations for exchanges designing Mention Markets for listing. CNBC reported in August that the CFTC was conducting an internal review of such markets.

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CFTC issues staff advisory on Mention Markets, citing heightened manipulation risk - CoinPost Terminal