MVA Attorneys Publish Article on the Insider Trading Challenge in Prediction Markets
Moore & Van Allen attorneys Tiffany Payne, Barrett Morris, and Nader Raja recently authored a Westlaw Today article titled, “Profiting from Prediction — the Insider Trading Challenge in Prediction Markets.”
The article examines recent enforcement actions brought by the Commodity Futures Trading Commission (CFTC) and Department of Justice involving prediction markets, including what the authors describe as the first insider trading cases involving event contracts. The authors discuss the growing popularity of prediction markets, the regulatory questions surrounding these platforms, and the implications of these enforcement actions for companies and individuals with access to nonpublic information.
As the authors note, these first-of-their-kind cases should put all companies and individuals in the prediction market ecosystem on notice that CFTC and DOJ enforcement in this area is accelerating. The article also explores the broader regulatory framework for prediction markets and key considerations for market participants.
Link below to PDF below.