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Apr 29, 2026
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LAW 2974 - Derivatives and Prediction Markets
Derivatives—contracts whose value derives from an underlying asset, rate, or event—underpin trillions of dollars in global financial activity and sit at the heart of modern risk management. They also increasingly include prediction markets: platforms like Kalshi, Polymarket, and Robinhood Markets where millions of people trade contracts on sports outcomes, elections, and major world events. These markets are currently at the center of the most consequential regulatory battle in American financial law over whether event contracts are federally regulated derivatives or illegal gambling. This course prepares you to navigate that landscape. Subjects covered include: (i) the Commodity Exchange Act’s regulatory regime for commodity futures, exchange-traded options, and foreign exchange; (ii) event contracts and prediction markets, including CFTC registration as designated contract markets, the public interest exemption, and the growing circuit split over federal preemption of state gambling laws; (iii) the swaps regulatory regime under Title VII of the Dodd-Frank Act; (iv) registration categories for markets and market participants, including futures commission merchants, derivatives clearing organizations, and swap dealers; (v) drafting and negotiating ISDA Master Agreements; (vi) cross-border regulation and the extraterritorial reach of U.S. law; and (vii) enforceability in bankruptcy. By the end of the course, you will understand the regulatory framework governing both traditional derivatives and the prediction markets you’re already trading—and be positioned to practice in one of the hottest areas of financial law.
Prerequisites & Notes
None.
Credits: 2
View Course Offering(s):
Summer Session I 2026
Summer Session II 2026
Summer Session III 2026
Fall 2026
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