Prediction Markets: CSA and CIRO Remind Industry of Current Rules

BCSC News Releases

Published April 2nd, 2026

Detected April 3rd, 2026

Summary

The Canadian Securities Administrators (CSA) and Canadian Investment Regulatory Organization (CIRO) issued a joint reminder that prediction markets and event contracts are subject to existing securities and derivatives laws. Anyone facilitating trading in event contracts that are securities or derivatives must comply with registration or recognition requirements. Two CIRO members currently have authorization to facilitate Canadian client access to event contracts on foreign prediction markets, subject to terms and conditions.

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What changed

The CSA and CIRO clarified that prediction markets facilitating trading of event contracts (also called prediction or forecast contracts) are subject to Canadian securities and derivatives legislation. Key requirements include registration or recognition for those facilitating trading, and Multilateral Instrument 91-102 prohibits binary options with terms under 30 days. Two CIRO members have been authorized to facilitate client access to foreign prediction markets under specific terms and conditions established in consultation with CSA. No prediction market has yet been recognized as an exchange or registered as a dealer in Canada.

Compliance officers at investment dealers and trading platforms should verify their current authorization status with CIRO before facilitating Canadian client access to event contracts. Any industry participant considering offering these products must contact their local CSA member and CIRO prior to doing so. The CSA and CIRO indicate ongoing review of terms and conditions and may issue further guidance or regulatory changes.

What to do next

Confirm current CIRO authorization status before facilitating Canadian client access to event contracts
Contact local CSA member and CIRO before offering prediction market products
Review Multilateral Instrument 91-102 binary options restrictions for applicability to any event contracts being offered

Penalties

Non-compliance with applicable securities and derivatives laws may lead to enforcement action

Source document (simplified)

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News Release

Prediction markets: CSA and CIRO remind industry and investors of the current rules

### Date:

2026-04-02
- ### Number:

2026/020

MONTRÉAL – Given the growing interest in prediction markets in Canada, the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) want industry and investors to be aware of the applicable requirements governing prediction markets and event contracts (also known as prediction contracts and forecast contracts).

Prediction markets are platforms that facilitate trading of event contracts, which pay out based on the outcomes of future events.

Anyone trading, or facilitating trading, in event contracts which are securities or derivatives, must follow applicable requirements under securities or derivatives legislation, such as registration or recognition requirements. For instance, in some CSA jurisdictions, Multilateral Instrument 91-102 Prohibition of Binary Options prohibits any person from advertising, offering, selling or otherwise trading a binary option having a term to maturity of less than 30 days, with or to an individual.

Failure to comply with applicable requirements under Canadian securities and derivatives laws may lead to enforcement action.

On March 26, 2026, CIRO published a bulletin, Application of CIRO Requirements to Event Contracts. At present, two CIRO members have been authorized to facilitate Canadian client access to event contracts, including contracts executed on foreign regulated prediction markets. Facilitating trading of event contracts by CIRO dealer members is subject to certain terms and conditions imposed by CIRO, in consultation with CSA members, which relate to what types of products may be offered to Canadian clients and how these products may be traded. The CSA and CIRO continue to review these terms and conditions, which may be subject to change for these dealer members and/or any others in the future.

While these CIRO members may facilitate Canadian client access to event contracts, traded on non-Canadian markets, to date, no prediction market has been recognized as an exchange or registered as a dealer (or exempted from those requirements) by the CSA.

The CSA and CIRO continue to monitor developments involving prediction markets and event contracts and intend to issue further guidance on how securities or derivatives legislation applies to them. Due to regulators’ ongoing concerns around prediction markets, the CSA and CIRO will also consider whether other regulatory action is required, including changes to the terms and conditions in the above-mentioned CIRO bulletin. Any industry participant interested in trading, or facilitating trading, in event contracts with Canadian investors, should contact their local CSA member and CIRO before doing so.

The CSA, the council of the securities regulators of Canada’s provinces and territories, coordinates and harmonizes regulation for the Canadian capital markets.

The Canadian Investment Regulatory Organization (CIRO) is the pan-Canadian self-regulatory organization that oversees all investment dealers, mutual fund dealers and trading activity on Canada’s debt and equity marketplaces. CIRO is committed to the protection of investors, providing efficient and consistent regulation, and building Canadians’ trust in financial regulation and the people managing their investments. For more information, visit www.ciro.ca.

For media inquiries, please contact:

Ilana Kelemen Canadian Securities Administrators
media@acvm-csa.ca

Joanna Nicholson Canadian Investment Regulatory Organization
jnicholson@ciro.ca

For investor inquiries, please contact your local securities regulator.