The US Commodity Futures Trading Commission has asked Novig and ProphetX to hold back several sports event contracts while the exchanges explain how the products comply with federal commodities law. A CFTC spokesperson confirmed the letters to SBC Americas, following the initial report by Front Office Sports.
The affected markets had been self-certified but had not opened for trading. That distinction means the action pauses planned launches rather than ordering the exchanges to unwind customer positions. The regulator can review a self-certified contract after filing and challenge it if statutory or public-interest requirements may not be met.
According to Front Office Sports, Novig's filings included micro markets on events such as the first player to score in a basketball game. ProphetX had filed scorigami contracts based on whether a game would finish with a score never previously recorded in that sport. The reported letters raised manipulation concerns for the micro markets and questioned whether the scorigami products satisfy the relevant definition under the Commodity Exchange Act.
Neither report describes a final enforcement order against the two exchanges. The immediate outcome is a delay while Novig and ProphetX respond, making the episode an early test of how the CFTC will apply its developing approach to narrowly framed sports contracts.
