On April 24, 2026, Brazil’s National Monetary Council (“CMN“) published Resolution No. 5,298 (“Resolution“) adding new rules to the organization and operation of the derivatives market in Brazil.
Below is a summary of the main points contained in the Resolution.
I. Principles of the derivatives market
The Resolution sets forth that the organization and operation of the derivatives market must follow, at least, the principles of: (i) investor protection and suitability of products, services, and transactions; (ii) transparency and clarity in the provision of information; (iii) market integrity and efficiency; (iv) prevention of regulatory arbitrage and speculation that are harmful to investors and detrimental to the public interest; and (v) encouragement of innovation.
II. Prohibitions
In an effort to restrict prediction markets in Brazil, the Resolution expressly prohibits the offering and trading in Brazil of derivative contracts whose underlying assets are related to: (i) real-world sporting events, as defined in Law No. 14,790, of December 29, 2023 (“Betting Law“); (ii) online gaming virtual events, as also defined in the Betting Law; and (iii) real or virtual events of a political, electoral, social, cultural, entertainment, or any other nature that the Brazilian Securities Commission (“CVM”) determines that do qualify as an economic-financial index, as defined in the Resolution.
Of note, these prohibitions also extend to offers of derivatives traded abroad that are made within the Brazilian territory, in accordance with CVM regulations.
III. Effective date
The Resolution will enter into force on May 4, 2026.
Our Banking & Finance practice group is available to provide any further clarification needed.