Novig codifies a 21+ trading floor in its rulebook

Novig said it has added a responsible trading framework to Chapter 14 of the Ludlow Exchange rulebook, turning a set of participant-protection standards into exchange rules rather than optional customer settings. In its press materials, the company described the move as the first time a broad package of responsible-trading standards has been codified directly into the rulebook of a CFTC-regulated prediction-market exchange.

The clearest change is a nationwide minimum age of 21. Novig said it will verify identity, re-verify where appropriate and suspend accounts when there is a credible indication of underage access or identity misuse. WIRED reported that this makes Novig stricter than prediction-market rivals Polymarket and Kalshi, which allow users aged 18 and older.

Jacob Fortinsky tied the decision to concerns about younger participants and to lobbying from the NCAA and other professional groups. He said there is a broader reckoning coming with younger traders and that the company wants to be seen as a serious, legitimate financial product.

The framework also gives users more formal controls over their own activity. Novig said participants will be able to set deposit, loss and exposure limits, receive elapsed-time reminders, take cooling-off periods and self-exclude indefinitely, with delays before increases to existing limits take effect.

Marketing rules are part of the package as well. The exchange said it will bar misleading risk-free claims, marketing aimed at people under 21, promotions tied only to recent losses and appeals to financial hardship. It also restricts trading incentives meant to encourage loss-chasing, larger deposits or the holding of losing positions.

Novig said it will require clearer disclosure of amounts at risk, maximum potential losses and settlement terms, while reviewing platform features that could obscure risk or encourage impulsive trading. New contracts must be reviewed for participant-protection issues before listing, with enhanced disclosures, tighter limits or other safeguards used where needed.

The company also said it will use risk-based monitoring to look for patterns such as rapid increases in deposits or trading, repeated deposits after losses, attempts to raise limits or remove exclusions, and apparent loss-chasing. Responses can range from educational prompts to temporary or permanent restrictions, and the framework calls for metrics, recordkeeping and periodic review, with information available to the CFTC on request.

On August 12, the CFTC reminded designated contract markets about self-certification filings for market-maker, liquidity, trading and incentive programs, warning that procedural or substantive deficiencies can interfere with review. The New York City Council also opened an investigation into marketing by major prediction-market platforms, with particular concern for young people.