The European Securities and Markets Authority has issued a statement reminding firms of their obligations under existing product intervention measures on binary options. This statement is in response to the growing popularity of prediction markets, also known as event contracts, which have seen increasing retail participation globally. Event contracts are products with a binary financial outcome, depending on a yes-or-no answer to a question about a future event, and can exist for a wide variety of event questions. The classification of event contracts as financial instruments depends on the event question, and they may also qualify as bets under national gambling legislation. If event contracts are considered financial instruments, they are classified as derivatives and fall within the scope of existing national product intervention measures on binary options. These measures prohibit the marketing, distribution, or sale of binary options to retail clients, and firms must assess whether their newly offered products fall within this scope. The statement also reminds firms that distributing event contracts that qualify as financial instruments in the EU requires authorization as an investment firm. This authorization is necessary even if the event contracts are only distributed to non-retail clients. The European Securities and Markets Authority is emphasizing the importance of investor protection and ensuring that firms comply with existing rules and obligations. The statement provides further information and guidance for firms, and can be found on the ESMA website, with contact information available for Senior Communications Officer Cristina Bonillo.