CMN prohibits derivatives linked to sports betting and political events in Brazil - BNLData

CMN prohibits derivatives linked to sports betting and political events in Brazil - BNLData CMN prohibits derivatives linked to sports betting and political events in Brazil. BNL The 24.04.26 By: Magno Jose Share: -A + A The National Monetary Council (CMN) has established new rules for the derivatives market in Brazil. The decision was made in a session held on Wednesday (April 23). The guidelines will come into effect on May 4. Resolution CMN No. 5.298 prohibits the offering and trading in the country of derivative contracts whose underlying assets are related to sporting events. The prohibition also applies to online games and events of a political, electoral, social, cultural, or entertainment nature. The definition of these events is contained in Law 14.790, of December 29, 2023. The Brazilian Securities and Exchange Commission (CVM) is responsible for determining which topics are not representative of economic and financial benchmarks. The agency will adopt the necessary measures for supplementary regulation and implementation of the new rules. Principles of the derivatives market The regulation establishes five minimum principles that must be observed in the organization and operation of the derivatives market. The first determines the protection of investors and the suitability of products, services, and operations. The second establishes transparency and clarity in the provision of information. The third principle deals with market integrity and efficiency. The fourth addresses the prevention of regulatory arbitrage and speculation that are harmful to investors and detrimental to the public interest. The fifth provides for the encouragement of innovation. Permitted economic and financial benchmarks The regulation specifies what should be considered as an economic and financial benchmark. These include price or rate indices, securities indices, bond indices, interest rates, exchange rates, and credit risk ratings or indices. Also considered economic and financial benchmarks are the prices of commodities, financial assets, and securities traded on organized stock exchanges and over-the-counter markets. This also includes those registered and deposited in financial market infrastructures authorized to operate by the Central Bank or the CVM (Brazilian Securities and Exchange Commission). Other benchmarks related to variables of relevant economic or financial interest also fall into this category. They must be determined based on consistent and verifiable prices or methodologies. The established prohibitions apply to offerings within the national territory of derivatives traded abroad. The CVM (Brazilian Securities and Exchange Commission) is responsible for the specific regulation of these offerings. Gabriel Muricca Galípolo, president of the Central Bank of Brazil, signed the resolution. Collective interview The Brazilian government will hold a press conference this Friday, April 24th, at 2:30 PM, regarding the betting market in Brazil. Participating in the interview will be Ministers Dario Durigan (Finance) and Miriam Belchior (Chief of Staff), as well as other authorities. CMN Resolution No. 5.298 of April 24, 2026 CMN Resolution No. 5.298, of April 24, 2026 It provides for the organization and operation of the derivatives market in the country. The Central Bank of Brazil, pursuant to Article 9 of Law No. 4.595 of December 31, 1964, hereby announces that the National Monetary Council, in a session held on April 23, 2026, considering the provisions of Articles 3, caput, items I and III, and 4, caput, item I, of Law No. 6.385 of December 7, 1976, RESOLVED: Article 1. This Resolution governs the organization and operation of the derivatives market in the country. Article 2. The organization and operation of the derivatives market must observe, at a minimum, the following principles: I – investor protection and suitability of products, services and operations; II – transparency and clarity in the provision of information; III – Market integrity and efficiency; IV – prevention of regulatory arbitrage and speculation that are harmful to investors and detrimental to the public interest; and V – Encouraging innovation. Article 3. The offering and trading in the country of derivative contracts whose underlying assets are related to the following are prohibited: I – a real sporting event, as defined in Law No. 14.790, of December 29, 2023; II – virtual online gaming event, as defined in Law No. 14.790, of December 29, 2023; and III – real or virtual event of a political, electoral, social, cultural, entertainment, or any other nature that, at the discretion of the Securities and Exchange Commission, is not representative of an economic or financial benchmark. Sole paragraph. For the purposes of the provisions of item III of the main clause, the following shall be considered economic and financial benchmarks: I – price or rate indices, securities indices, bond indices, interest rates, exchange rates, credit risk ratings or indices; II – the prices of commodities, financial assets, and securities traded on organized exchange and over-the-counter markets or registered and deposited in financial market infrastructures authorized to operate by the Central Bank of Brazil or the Securities and Exchange Commission; and III – other benchmarks related to variables of relevant economic or financial interest, which are determined based on consistent and verifiable prices or methodologies. Article 4. The prohibitions referred to in Article 3 of this Resolution apply to offerings within the national territory of derivatives traded abroad, in accordance with the regulations of the Securities and Exchange Commission. Article 5. The Securities and Exchange Commission shall adopt, within the scope of its legal powers, the measures necessary for supplementary regulation and the implementation of the provisions of this Resolution. Article 6. This Resolution shall enter into force on May 4, 2026. GABRIEL MURICCA GALÍPOLO President of the Central Bank of Brazil Comment with Facebook Results of the CAIXA Lottery Mega-Sena lottery draw 2999: 09 - 24 - 26 - 38 - 45 - 58 Lottery draw 3000: Prize R$ 100 million Lotofácil contest 3668: 01 - 02 - 03 - 05 - 07 08 - 09 - 10 - 11 - 13 15 - 17 - 18 - 21 - 24 Contest 3669: Prize R$ 2 M Most read See also... Bets: Driven by electoral desperation, Lula wants to ban an activity he just regulated. Banning legal betting is tantamount to handing consumers over to the black market. PT presents guidelines for 2026 with Selic below 10% and an end to betting. Sportradar denies links to 270 illegal betting operators and shares fall 22%. 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