Market Integrity and Manipulation in Election Prediction Markets

Market Integrity and Manipulation in Election Prediction Markets

Client Alert

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With just one week until election day, there has been increasing focus on and activity in election prediction markets. Recent trading activity and price action have raised concerns regarding election integrity and market manipulation. In this client alert, we highlight the conceptual distinction between election integrity issues and market manipulation issues, and suggest that, regardless of any concerns regulators may have regarding election integrity, it will be exceedingly difficult for the CFTC to bring an enforcement action against market participants who participate in these markets in good faith. Attorneys from WilmerHale will discuss the issues in this client alert and others during a webinar tomorrow (“Previewing the CFTC’s Post-Election Agenda”). Register here. 

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