Authorization requirements that affect implementation
The regulations require approval or approved certification of contract classes, clear settlement rules, participant-asset safeguarding, market-integrity controls and an approved recovery and wind-down plan. They permit digital-asset payments, including stablecoins, subject to the framework. Substantive presence and material outsourcing remain matters for regulatory assessment. These provisions do not establish permission in another country. Regulations 12–23.
The product team should start with a contract specification. State the event, trading period, settlement source, exceptional outcomes, fees and maximum participant exposure. Describe who can approve, suspend, amend or settle it and what record each action creates.
Fees and application timing
| Published charge | Amount |
|---|---|
| Application for prediction-market authorization | £30,000 |
| Annual authorization fee | £100,000 |
| General prediction-market duty | 0.15% of commission charged; no exemption stated |
These are the amounts in LN.2026/316, effective August 13, 2026. They exclude company, personnel, professional services, technology and other applicable taxes or costs.
Regulation 7 provides for determination within six months of a complete application, with a longer notified period possible in exceptional circumstances. This is not a guaranteed approval or launch date. Application provision.
Review a difficult contract before a polished demonstration
Consider an event whose settlement source publishes a correction after trading closes. The review should establish which rule version applies, who decides the outcome, what participants see and how any change affects positions and balances.
Use a second scenario in which an unapproved contract is submitted for listing. Check that the workflow prevents it from becoming tradable and preserves the approval history. These are proposed acceptance scenarios, not claims that a particular implementation has already passed regulatory assessment.
The same review should connect the order book, matching, collateral, settlement and accounting records. If one supplier supplies the market engine and another handles custody, the interface and responsibility for a mismatch must be explicit.
Scope the technology around the authorization
Discuss a prediction-market project with the event classes, target participants, settlement assets, liquidity model and intended presence. SuperBluOrange's prediction markets platform page covers the product and implementation questions. Legal classification, the application and destination-market permissions remain separate workstreams.
Sources reviewed: October 17, 2026.