Exchange CEOs Urge Review of Easy Prediction Market Listings (1)

The heads of Chicago’s largest exchanges are calling for a review of the process that has allowed prediction market platforms to grow quickly by listing financial contracts without explicit regulatory approval.

The so-called self-certification process has been “abused,” making it possible to offer markets that are prone to manipulation and insider trading, Terry Duffy, chief executive officer of CME Group Inc., said in an interview at the Futures Industry Association’s annual conference in Boca Raton, Florida. The process is open to all exchanges, including startup prediction market venues.

Self certification has long allowed financial exchanges operating under the oversight ...