Insights < BACK TO ALL INSIGHTS
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…
Advertising Prediction Markets? The CFTC Just Sent a Clear Message to Affiliates.
August 17, 2026
Advertising Prediction Markets? The CFTC Just Sent a Clear Message to Affiliates.
By: Kyra Pulliam
The Commodity Futures Trading Commission (CFTC) recently issued guidance directed to designated contract markets (DCMs) concerning the marketing and offering of event contracts. The guidance was addressed to DCMs because no swap execution facilities (SEFs) currently list event contracts. However, the CFTC’s analysis is equally applicable to futures commission merchants (FCMs) and introducing brokers (IBs), as well as the advertising affiliates and marketing partners that…
CFTC Sends Message to Prediction Markets: You Are Not a Sportsbook
August 11, 2026
CFTC Sends Message to Prediction Markets: You Are Not a Sportsbook
By: John Mikuta
In recent guidance, the Commodity Futures Trading Commission (“CFTC”) has made clear that event contracts offered by regulated prediction-market entities must not be marketed in a format commonly used by casino gambling bookmakers. The CFTC’s Division of Market Oversight and Market Participants Division issued a notice to all CFTC-regulated entities and affiliates regarding their obligations to refrain from engaging in misleading or deceptive practices when…
Nicole Kardell on Keeping iGaming Clients Nimble Amidst Ever-Evolving Privacy Regulations
August 3, 2026
Nicole Kardell on Keeping iGaming Clients Nimble Amidst Ever-Evolving Privacy Regulations
By: Ifrah Law
For iGaming companies, protecting customer privacy is paramount: Nicole Kardell acts as their guardian against federal, state and civil actions that could damage their reputations and profitability. Nicole performs on the leading edge of privacy law, helping to keep Ifrah’s clients in compliance with U.S. and international regulations governing the handling of customers’ confidential information. A certified privacy professional with expertise in European privacy law…
Betting on Technology: Bipartisan Proposal for Requiring Facial Recognition to Keep Minors from Wagering Online
July 29, 2026
Betting on Technology: Bipartisan Proposal for Requiring Facial Recognition to Keep Minors from Wagering Online
By: Lauren Scribner
“As every parent knows, when you tell a kid not to do something, they almost always end up trying to do it,” said Congresswoman Kristen MacDonald Rivet (MI-8) about the recently introduced bipartisan “Facial Recognition to Protect Children Act” (“proposed Act”).[1] She continued, “[k]ids under the age of 18 shouldn’t be making bets, but now it’s just a few taps away on their phones. Our…
Kim Conroy on Unleashing Litigation’s Maximum Potential in High-Stakes Cases
June 29, 2026
Kim Conroy on Unleashing Litigation’s Maximum Potential in High-Stakes Cases
By: Ifrah Law
With first-chair trial experience and a record of success in complex disputes across federal and state courts and in arbitrations, Kim Conroy is Ifrah’s cross-firm coach for crafting and executing complex litigation strategies. She teams up with both senior and junior lawyers to strengthen their cases with procedural insights and time-tested tactics. Kim also is called upon to assist with bet-the-company cases involving institutional and…
