As the US gambling industry grapples with the emergence of prediction markets, Brazil financial regulators are opening up to similar event markets.
The Brazilian Securities and Exchange Commission, CVM, this week gave a green light to B3 to become the first prediction market operator in Brazil. B3 plans to launch in the first quarter this year, per BNL Data.
CVM will initially restrict the event trading to professional investors with assets of more than R$10 million. B3 will initially offer binary options including “yes” or “no” scenarios on the dollar, Ibovespa and bitcoin.
“The world of derivatives is increasingly approaching the frontier of the predictive market,” B3 President Gilson Finkelsztain said in an interview with Valor.