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CFTC Opens the Door for Passive Software Providers in Derivatives Markets
FEATURED
September 28, 2026
CFTC Opens the Door for Passive Software Providers in Derivatives Markets
By: John Mikuta
In a new no-action letter, the Commodity Futures Trading Commission (“CFTC”) recently opened the door for software developers building software to facilitate trading in derivatives and futures. The CFTC’s Market Participants Division (“MPD”) issued a no-action position providing that it would not recommend bringing an enforcement action against a “passive software provider,” or “PSP”, for failing to register as an introducing broker (“IB”) or associated person of an IB under the Commodity Exchange Act (“CEA”).[1] As background, the CEA requires any person who, for compensation or profit, “is engaged in soliciting and in accepting orders” for futures and swaps to register as an IB.[2] Individuals performing that work for an IB must also register themselves as associated persons.[3] The CFTC…
Trust the Future You Trade: Lessons About Prediction Market Surveillance from the DACOM Summit
September 23, 2026
Trust the Future You Trade: Lessons About Prediction Market Surveillance from the DACOM Summit
By: John Mikuta
Prediction markets are no longer a niche offering confined to a small corner of the internet. The rapid growth of prediction markets has launched them into the mainstream as a meaningful part of the financial ecosystem. But with that growth comes many of the same market integrity and compliance challenges that more traditional financial markets have long encountered. Prediction markets have faced public scrutiny over…
High Wire Act
September 22, 2026
High Wire Act
By: James Trusty
The federal statute known as the Wire Act (18 U.S.C. § 1084) has had a tumultuous history. For many years, the DOJ interpreted it to include restrictions on both sporting events and non-sporting contests. That changed dramatically in 2011, when the Office of Legal Counsel (“OLC”), responding to states seeking clarification before establishing state lotteries, published an analysis of the Wire Act. After a thorough…
Who Needs a License for Online Sports Betting and Gaming in New Jersey?
September 6, 2018
Who Needs a License for Online Sports Betting and Gaming in New Jersey?
By: Steven Eichorn
With online sports betting and gaming now legal in New Jersey, many businesses are seeking to jump into this flourishing industry. However, the regulations require that any company seeking to offer this kind of entertainment be associated with a land-based casino in the state, and that kind of association requires a specific legal status. Companies seeking to do business with a New Jersey casino need…
A Guide To Getting A Legal Online Gaming License
August 29, 2018
A Guide To Getting A Legal Online Gaming License
By: Ifrah Law
Now that states have the right to decide whether to allow sports betting within their borders, the floodgates have opened: numerous states are passing bills so that this form of entertainment can start generating revenue within their borders. Because many consumers will want to engage in this kind of online gaming on their mobile devices, some forward-thinking jurisdictions have specifically included mobile sports betting in…
Why We Won’t See A Federal Sports Betting Bill Soon
July 30, 2018
Why We Won’t See A Federal Sports Betting Bill Soon
By: Ifrah Law
Following the Supreme Court decision to overturn The Professional and Amateur Sports Protection Act (PASPA) in Murphy v. NCAA, in June Delaware became the first state to take advantage of the new ruling. Delaware governor John Carney placed the state’s first legal single-game bet: $10 on the Philadelphia Phillies in their game against the Chicago Cubs, and within 24 hours, Delaware drew more than $322,000…
Industry Experts Agree: Online and Mobile Wagering is Critical to the Success of Sports Betting
July 25, 2018
Industry Experts Agree: Online and Mobile Wagering is Critical to the Success of Sports Betting
By: Ifrah Law
The recent University of Nevada Las Vegas Institute on Gaming Regulation’s Understanding Sports Betting seminar included presentations by professors from UNLV, practicing attorneys in the field, sports book operators, and regulators from the Nevada Gaming Control Board, who provided a wide range of viewpoints on the ins-and-outs of sports betting regulation. The one topic on which all presenters and attendees agreed was the importance of…
Effective Sports Betting Regulation Must Cover Mobile and Online Betting, Too.
June 4, 2018
Effective Sports Betting Regulation Must Cover Mobile and Online Betting, Too.
By: Ifrah Law
On May 14, 2018, the Supreme Court struck down the Professional and Amateur Sports Protection Act (“PASPA”), clearing the way for states to legalize sports gambling. In its wake, many states are now rushing to do just that. Currently fourteen states have legislation pending that would authorize some degree of sports wagering. An additional five states already have passed laws (New Jersey, West Virginia, Pennsylvania,…
