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ESMA Warns Some Prediction Market Event Contracts May Fall Under EU Binary Options Rules

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2026-07-03 17:01:29
ESMA said many prediction market event contracts could already be subject to EU retail restrictions on binary options, citing their binary outcomes and fixed payouts.

According to NS3.AI, the regulator said contracts with binary outcomes and fixed payouts are likely to qualify as financial instruments.

ESMA added that when such contracts qualify, offering them to professional or institutional clients would still require authorization under MiFID II.
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