CSA and CIRO Remind Industry of Rules Governing Prediction Markets and Event Contracts, Canada, April 2026

On April 2, 2026, the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) jointly issued a public statement reminding industry participants and investors of the applicable legal requirements governing prediction markets and event contracts in Canada. The statement is at the compliance-reminder stage; no new rules were promulgated on that date. The CSA and CIRO confirmed ongoing monitoring of rapidly expanding prediction market activity.

The controlling rules are provincial and territorial securities and derivatives statutes coordinated through the CSA. The statement cites Multilateral Instrument 91-102 Prohibition of Binary Options, which bars any person from advertising, offering, selling, or trading a binary option with a term to maturity of less than 30 days with or to an individual. On March 26, 2026, CIRO published its bulletin "Application of CIRO Requirements to Event Contracts," setting the terms and conditions under which CIRO dealer members may facilitate Canadian client access to event contracts on foreign regulated prediction markets. Two CIRO members had been authorized to facilitate such access as of the statement date, subject to conditions imposed in consultation with CSA members.

Any person trading or facilitating trading in event contracts that qualify as securities or derivatives must comply with registration or recognition requirements under applicable Canadian law. No prediction market had been recognized as an exchange or registered as a dealer by any CSA member as of the statement date. Failure to comply may trigger enforcement action. Prediction market operators seeking to offer event contracts to Canadian investors must contact their local CSA member and CIRO before doing so.

The CSA and CIRO will continue to review existing terms and conditions for authorized CIRO members and may impose changes. Further guidance on how securities or derivatives legislation applies to prediction markets is forthcoming. The statement does not exempt any existing or prospective prediction market operator from registration requirements, nor does it grandfather current business models. Event contract structures meeting the binary options definition under MI 91-102 remain prohibited for short-dated instruments regardless of the exchange on which they are offered.

Our firm advises on prediction market regulation and event contract compliance in Canadian and cross-border contexts, and maintains a dedicated partner network for securities and derivatives regulatory matters. We are available to advise operators, dealers, and platform sponsors on registration obligations, CIRO membership conditions, and derivatives licensing. Our work covers event contract structuring, securities registration, exchange recognition, CIRO compliance, iGaming and prediction market regulatory risk, and cross-border derivatives law.

Source: Canadian Securities Administrators / Autorite des marches financiers, "Prediction markets: CSA and CIRO remind industry and investors of the current rules," April 2, 2026, https://lautorite.qc.ca/en/general-public/media-centre/news/fiche-dactualites/prediction-markets-csa-and-ciro-remind-industry-and-investors-of-the-current-rules

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