CFTC Warns Against Insider Trading on Prediction Markets (1)

A key Commodity Futures Trading Commission official said the agency will use its powers to root out insider trading in prediction markets, as concerns about suspicious activity on the exchanges grow.

“Unfortunately there’s a myth in mainstream media and social media that insider trading law doesn’t apply in the prediction markets,” CFTC Enforcement Director David Miller said at a panel at New York University on Tuesday. “That is wrong.”

The multi-billion dollar industry has surged over the past year, despite legal challenges from state officials who argue the federally-regulated exchanges should fall under their jurisdiction. That rapid expansion has also ...