Brazil: National Monetary Council adopted resolution on prohibition of derivative contracts linked to sporting and non-economic events

On 23 April 2026, the Brazilian National Monetary Council adopted CMN Resolution No. 5,298 on the organisation and functioning of the derivatives market, including a prohibition of derivative contracts on sporting, gaming, and non-economic events. The Resolution will apply to participants in the derivatives market in Brazil, including offerors of derivatives traded abroad to investors in Brazilian territory. The Resolution will prohibit the offering and trading in Brazil of derivative contracts whose underlying assets relate to real sporting events as defined in Law No. 14,790 of 2023, virtual events of online games as defined in the same law, and real or virtual events of a political, electoral, social, cultural, entertainment, or other nature that the Brazilian Securities and Exchange Commission determines do not represent an economic-financial benchmark. The Resolution will treat as economic-financial benchmarks price and securities indices, interest and exchange rates, credit risk classifications and indices, prices of commodities and financial assets traded on organised exchanges or registered in financial market infrastructures authorised by the Central Bank or the Brazilian Securities and Exchange Commission, and other benchmarks based on consistent and verifiable methodologies. The Brazilian Securities and Exchange Commission will adopt complementary regulation to implement the Resolution. The Resolution will enter into force on 4 May 2026.