Prediction markets have surged from the fringes of financial discourse to a topic commanding serious attention from broker-dealers, investment advisers, and other regulated intermediaries, yet the compliance and regulatory frameworks governing firm and employee participation are still taking shape. In this Lexology Masterclass, Morrison Foerster partners spanning derivatives, commodities, and structured products, investment management, and broker-dealer compliance and regulation will cut through the complexity, offering practical guidance on how financial market participants can engage with prediction markets thoughtfully and lawfully. The discussion will address the spectrum of regulatory considerations unique to different firm types, with a particular focus on how SEC-regulated intermediaries should be thinking about use of MNPI, confidential information, potential shadow trading implications, and employee trading policies, including the obligation to monitor and review employee trading activity, and the key elements of an effective, defensible policy framework.
Whether your firm is actively participating in prediction markets, fielding employee inquiries, or simply assessing the landscape, this session will equip you with the legal and compliance tools to move forward with confidence.
