SEC Chief Atkins Pumps the Brakes on Prediction-Market Funds

The top US securities regulator is delaying the launch of a wave of novel exchange-traded funds that would let investors wager on events such as elections and economic data as the agency weighs how far the $15 trillion ETF wrapper can stretch.

Securities and Exchange Commission Chairman Paul Atkins said Wednesday that he has instructed staff to seek public inputon proposed products that raise new regulatory questions. He noted that fund sponsors have agreed to delay several ETFs tied to prediction market contracts while the commission deliberates.

“Novel products raise novel questions, and I appreciate the willingness fund sponsors ...