Staff Advisory on Individual Mention, Attendance and Interaction Event Contracts

CFTC Letter No. 26-27 Advisories September 22, 2026 UNITED STATES COMMODITY FUTURES TRADING COMMISSION Three Lafayette Centre 1155 21st Street, NW Washington, DC 20581 CFTC Staff Advisory Division of Market Oversight To: Designated Contract Markets Subject: Staff Advisory on Individual Mention, Attendance and Interaction Event Contracts Innovation in prediction markets continues to expand the range of matters on which market participants may trade and take positions. By allowing participants to take positions on the occurrence of future events through event contracts, prediction markets aggregate information held by many sources, generate publicly observable forecasts concerning matters of broad interest, and provide a means of managing exposures that are not readily addressed in traditional derivatives markets. 1 Continued innovation of this kind depends on contract designs that are consistent with the Commodity Exchange Act (“Act” or “CEA”) 2 and Commission regulations 3 thereunder, and nothing in this advisory should be read to discourage the foregoing. In light of the evolving prediction market landscape and the emergence of novel event contracts, staff of the Division of Market Oversight (“DMO”) of the Commodity Futures Trading Commission (“CFTC” or “Commission”) are issuing this advisory to provide their views regarding the listing and trading of event contracts based on whether an individual will say or “mention” certain words, attend or appear at an event, or otherwise interact with another person. 4