CFTC gives exchanges 30 days to address US geographic trading restrictions

The Commodity Futures Trading Commission said on 5 November that US derivatives exchanges have 30 days to remove domestic geographic restrictions that violate its impartial-access requirements or explain why compliance is infeasible. The CFTC announcement applies to designated contract markets, including the US exchanges that list prediction-market event contracts.

Brokers and other intermediaries are part of the review

The CFTC also says exchanges should check within the same 30-day period whether intermediaries accessing their markets comply with the exchanges’ impartial-access requirements and avoid impeding access. Exchanges that cannot make that assurance should explain why to the Division of Market Oversight.

The interpretation concerns Regulation 38.151(b), which requires exchanges to provide competitive, open, fair and impartial access to members and people with trading privileges. CFTC Chair Michael Selig said geographic restrictions are inconsistent with the agency’s view that US derivatives markets should operate on a uniform national basis. The Commission said it would consider the circumstances of each case in deciding whether to act. CFTC announcement

How the directive intersects with court orders

A day before the announcement, a federal judge barred Kalshi from offering sports contracts on the lands of two California tribes. The 4 November order gives the tribes until 13 November to supply boundary maps and requires Kalshi to report its compliance steps within 21 days of the order.

The CFTC’s announcement leaves open how the agency will treat restrictions required by individual court orders. The practical test will be whether exchanges and brokers announce changes to which contracts customers can trade from a given location. The interpretation concerns US designated contract markets, including Polymarket US. The announcement gives no indication of a change to access on Polymarket’s international platform.