Wealthsimple receives regulatory approval to offer prediction markets to investors

An app screenshot for Wealthsimple is seen on a smartphone in a photo illustration made in Toronto on June 17, 2024. Photo by THE CANADIAN PRESS/Giordano CiampiniArticle contentWealthsimple Inc. says it has received regulatory approval to offer Canadian investors the opportunity to trade directly on the outcomes of future events.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe Toronto-based company, which announced a number of measures last year to compete with Canada’s biggest banks, said in a statement that it received approval from the Canadian Investment Regulatory Organization (CIRO) to offer “futures and forecast contracts tied to economic indicators, financial markets and climate trends.”Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle contentKnown as prediction markets, the trading concept allows users to trade contracts on real-world events, ranging from sports to politics to the economy. While popular in the United States, the concept is still new in Canada.Article contentPosthasteBreaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentWealthsimple has not yet announced any plans for when it plans to launch its platform, but Interactive Brokers Canada Inc., an automated global electronic broker, launched such a platform in Canada in April 2025.Article contentThe trading mechanism offers a way to investors to “hedge against the outcome of key market-moving events,” Interactive Brokers said in its press release last year while launching its platform. “For example, if an investor believes inflation will rise above a certain level, they can buy a ‘yes’ contract, or if they think it won’t, they can buy a ‘no’ contract instead.”Article contentPrediction markets have reportedly surged in popularity since the 2024 election in the United States, according to Reuters, when the real-time probabilities turned out to be more accurate than the polling. The sector has attracted billions in funding since then.Article contentThe sector, though, has faced issues related to insider trading and market manipulation. For example, one user won US$400,000 just hours after placing a correct bet on when the U.S. would capture former Venezuelan president Nicolas Maduro.Article contentArticle contentPrediction market platforms in the U.S., such as Kalshi Inc. and QCX LLC (doing business as Polymarket), announced steps this week to tackle these issues.Article contentRead More Wealthsimple's Michael Katchen plans to take on the Big Six in 2026 Wealthsimple valued at $10 billion in latest equity round Article contentKalshi on Monday said it has launched tools that can preemptively block political candidates from betting on their own campaigns. Individuals involved in sports will also be preemptively blocked from trading in events that they are involved in.Article contentThese steps were taken after two bipartisan U.S. senators introduced a bill called the Prediction Markets are Gambling Act for better regulation of the sector.Article content• Email: nkarim@postmedia.comArticle contentTrending Posthaste: Many Canadians could be committing insurance fraud — and don't even know it News Smith calls for new southbound pipelines, says U.S. could call 'first dibs' on Canadian oil exports Oil & Gas Why market bets for interest rate hikes in Canada are so high Economy Meet the Canadian e-bike maker who is redefining the factory floor Electric Vehicles Posthaste: Canada's troubled housing market just got hit with another headwind News Share this article in your social network Get the latest from Naimul Karim straight to your inbox Sign Up CommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. 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