CFTC Issues Advisory on Incentive Program Self-Certification

The Commodity Futures Trading Commission’s Division of Market Oversight (DMO) today issued an advisory reminding designated contract markets (DCMs) of their regulatory obligations. This guidance specifically addresses the self-certification of market-maker, liquidity, trading, or incentive programs, including those related to prediction markets.

DCMs are required to adhere to CFTC Regulations 40.5 and 40.6 when submitting such self-certifications. The DMO's advisory aims to ensure comprehensive compliance with the existing regulatory frameworks governing these various incentive programs.