Canadian regulators have published a joint notice rejecting sports prediction markets, indicating that they don’t consider them to qualify as securities or derivatives.
The letter was issued by the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO). The CSA is the umbrella organization for Canada’s provincial and territorial securities regulators, while CIRO is the national self-regulatory organization overseeing all investment dealers, mutual funds dealers and trading activity on Canada’s debt and equity marketplaces.
“In light of interest in event contracts based on sports and entertainment events or outcomes, this guidance clarifies that in the view of the CSA, these should not be regulated within securities and derivatives legislation, and that CIRO does not consider it appropriate to facilitate or approve an application by their dealer members to trade these types of event contracts,” indicates the letter.
