Brazil has moved to set clearer limits for event-based derivatives. The new Brazil derivatives market resolution takes effect on 4 May 2026 affecting directly contracts linked to sports, online gaming, politics and other non-financial events.

  • CMN Resolution No. 5,298 sets rules for the organisation and operation of the derivatives market in Brazil. The measure was approved by the National Monetary Council on 23 April 2026. It was published by the Central Bank of Brazil on 24 April 2026.
  • The resolution says the Brazil derivatives market must follow principles including investor protection, transparency and market integrity. It also points to the prevention of regulatory arbitrage and speculation that could harm investors or the public interest. Innovation is also listed as one of the guiding principles.
  • The main restriction applies to derivatives whose underlying assets are linked to real sports-themed events. It also covers virtual online gaming events, as defined under Brazil’s Law No. 14,790. This means sports and gaming event contracts cannot be offered or traded in the country under the new rules.
  • The ban also covers derivatives tied to political, electoral, social, cultural, entertainment or similar events. The Brazilian Securities and Exchange Commission will decide when an event is not an economic or financial reference. The resolution states: “The offer and trading, in the country, of derivative contracts” linked to these events are prohibited.
  • Economic and financial references remain allowed under the Brazil derivatives market framework. These include price indexes, interest rates, exchange rates, securities indexes, commodities and financial assets. Other references may also be accepted if they are based on verifiable prices or consistent methodologies.
  • The restrictions also apply to foreign derivatives offered inside Brazil. This means contracts traded abroad cannot be marketed locally if they fall under the prohibited categories. The Securities and Exchange Commission will be responsible for additional regulation and implementation.

Please find more news here.