Key facts
- The CFTC issued guidance to prediction market platforms.
- The CFTC is concerned about incentive programs and reward structures.
- The agency believes these programs could encourage manipulative trading.
- Kalshi is partnering with DoubleZero.
- They are launching a real-time, low-latency market data feed.
- The data feed will provide access to Kalshi's order book data.
- The data will cover crypto perpetual futures and sports contracts.
- The service aims to provide institutional traders with traditional finance infrastructure.
The U.S. Commodity Futures Trading Commission (CFTC) has issued a warning to prediction market platforms regarding their incentive programs. The agency is concerned that certain reward structures and deficient filings could encourage manipulative trading practices on these platforms. This guidance highlights regulatory scrutiny over the burgeoning prediction market sector.
In a separate development within the prediction market space, Kalshi has announced a partnership with DoubleZero, a company utilizing Solana blockchain technology. This collaboration is set to launch a real-time, low-latency market data feed. The service is designed to offer institutional traders direct access to Kalshi's order book data. Initially, this data will cover crypto perpetual futures and sports contracts, aiming to replicate the infrastructure found in traditional financial markets.