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ataylor@vixio.com
British Columbia
The British Columbia Securities Commission
financial services
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2091 charsCanadian Securities Administrators and Investment Regulatory Organization Issue Event Contracts Compliance Guidance
On August 27, 2026, the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) jointly issued Staff Notice 91-307 providing guidance on the regulatory treatment of event contracts, commonly known as prediction contracts or prediction market contracts. The notice addresses products whose settlement depends on the outcome of future occurrences or events, with initial focus on contracts based on sports or entertainment events or outcomes.
The CSA and CIRO staff clarified that event contracts based on sports and entertainment events or outcomes should not be regulated within securities and derivatives legislation. CIRO does not consider it appropriate for its dealer members to facilitate or approve applications to trade these types of event contracts. However, CIRO investment dealer members previously authorized to facilitate trading in event contracts remain subject to specific terms and conditions. These authorized dealers may only facilitate trading of a limited set of event contracts traded and cleared through certain U.S. regulated exchanges and clearing houses, specifically those based on economic, environmental, or financial indicators. Trading or facilitating trading in event contracts outside these permissible categories has not been authorized by CIRO or the CSA.
The guidance emphasizes that anyone trading or facilitating trading in event contracts that constitute securities or derivatives must comply with applicable requirements under securities and derivatives legislation, including registration and recognition requirements. This includes compliance with Multilateral Instrument 91-102 Prohibition of Binary Options in relevant Canadian jurisdictions, which prohibits advertising, offering, selling, or trading binary options with terms to maturity of less than 30 days to individuals. The CSA and CIRO indicated that further guidance on event contracts based on other types of events will follow, and that existing terms and conditions for authorized dealers remain subject to further restrictions or changes.
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2091 charsCanadian Securities Administrators and Investment Regulatory Organization Issue Event Contracts Compliance Guidance
On August 27, 2026, the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) jointly issued Staff Notice 91-307 providing guidance on the regulatory treatment of event contracts, commonly known as prediction contracts or prediction market contracts. The notice addresses products whose settlement depends on the outcome of future occurrences or events, with initial focus on contracts based on sports or entertainment events or outcomes.
The CSA and CIRO staff clarified that event contracts based on sports and entertainment events or outcomes should not be regulated within securities and derivatives legislation. CIRO does not consider it appropriate for its dealer members to facilitate or approve applications to trade these types of event contracts. However, CIRO investment dealer members previously authorized to facilitate trading in event contracts remain subject to specific terms and conditions. These authorized dealers may only facilitate trading of a limited set of event contracts traded and cleared through certain U.S. regulated exchanges and clearing houses, specifically those based on economic, environmental, or financial indicators. Trading or facilitating trading in event contracts outside these permissible categories has not been authorized by CIRO or the CSA.
The guidance emphasizes that anyone trading or facilitating trading in event contracts that constitute securities or derivatives must comply with applicable requirements under securities and derivatives legislation, including registration and recognition requirements. This includes compliance with Multilateral Instrument 91-102 Prohibition of Binary Options in relevant Canadian jurisdictions, which prohibits advertising, offering, selling, or trading binary options with terms to maturity of less than 30 days to individuals. The CSA and CIRO indicated that further guidance on event contracts based on other types of events will follow, and that existing terms and conditions for authorized dealers remain subject to further restrictions or changes.