UK FCA considers easing ban on financial prediction markets

According to The Times, the UK Financial Conduct Authority (FCA) has held discussions with trading platforms regarding the potential relaxation of the ban on retail investors participating in financial prediction markets, which has been in effect since 2019. The FCA currently continues to classify prediction contracts related to financial and certain weather events as binary options, and has publicly stated that the ban remains necessary to address the speculative nature of such products and the risk of consumer harm.