In a letter to firms operating prediction markets, along with futures firms that are involved with trading event contracts, the CFTC’s division of market oversight and its market participants division called on firms to “display clear and accurate pricing information for derivatives products.” It also warned that pricing contracts in formats used by gambling bookmakers is “likely to mislead” traders. The use of this sort of potentially misleading pricing information for regulated products risks violating federal law prohibiting the use of manipulative devices, it warned. “Displaying pricing information for derivatives products in bookmaker-style odds is likely to mislead market participants about the nature of the transaction into which they are entering and may deprive users of access to indicia of market depth and pricing impact,” it said. “Market participants should display information, including pricing information, that indicates to consumers when a product is an event contract on a CFTC-regulated exchange, rather than a higher-margin, non-market-priced bookmaking product,” the regulator said.