Novig has selected Eventus’ Validus platform as the trade surveillance solution for its newly approved prediction market exchange, underscoring how prediction markets are rapidly adopting the same market integrity infrastructure long used by futures exchanges, equity markets and institutional trading venues.
The deployment follows Novig’s recent designation by the U.S. Commodity Futures Trading Commission as a Designated Contract Market, allowing the company to operate a federally regulated prediction market under a nationwide regulatory framework. As part of that transition, Novig is implementing institutional-grade surveillance technology designed to monitor trading activity, identify market abuse and support regulatory compliance as trading volumes grow.
The move highlights how prediction markets are evolving from niche platforms into regulated financial marketplaces. As the sector expands beyond election contracts into sports and other real-world events, exchanges are increasingly expected to demonstrate the same surveillance capabilities found across traditional derivatives markets.
Trade Surveillance Becomes Core Exchange Infrastructure
Market surveillance has become a fundamental requirement for regulated exchanges rather than simply another compliance tool. Modern surveillance platforms continuously monitor trading activity for behaviours including spoofing, layering, wash trading, cross-account coordination and other forms of market manipulation. They also provide investigation workflows, audit trails and regulatory reporting capabilities that enable exchanges to demonstrate ongoing market oversight. Those requirements have become particularly important as prediction markets move under the CFTC’s regulatory framework. Kelechi Ukah, Novig’s co-founder and Chief Technology Officer, said the company viewed surveillance as an essential component of market design rather than a regulatory obligation.“We approach trade surveillance as core infrastructure, not a compliance afterthought. If participants don’t trust the market, liquidity disappears so our trade surveillance program is foundational to our mission. Eventus has been a strong partner in shaping a robust and credible surveillance program for Novig that will accommodate us as we grow. Eventus strikes the best balance between institutional-grade credibility and flexibility to meet Novig’s unique needs.”Rather than building an internal surveillance platform, Novig chose Eventus’ Validus platform, which is already deployed across banks, broker-dealers, futures commission merchants, proprietary trading firms, exchanges and digital asset venues.
Prediction Markets Present New Surveillance Challenges
While prediction markets share many characteristics with futures exchanges, they also introduce surveillance challenges that differ from traditional asset classes. Sports contracts revolve around discrete outcomes rather than continuously priced financial instruments. Liquidity profiles can vary significantly depending on the event, while opportunities for manipulation may arise at different stages of a market’s lifecycle. According to Ukah, those differences made flexibility a critical selection criterion.“Prediction markets behave differently than traditional asset classes, with discrete outcomes, different liquidity profiles and different points of manipulation. We wanted a system that could adapt to those distinctions—not one implicitly optimized for equities or futures—while providing regulatory alignment, with strong mapping to CFTC expectations and a clear path as we scale into more formal regimes. Eventus has been helpful in translating regulatory expectations into concrete surveillance scenarios, providing us with a reference point for what good surveillance looks like, and ensuring coverage is comprehensive, rather than ad hoc.”The implementation includes configurable surveillance scenarios for spoofing, layering and wash trading, cross-account and cross-market analysis, case management workflows, real-time and post-trade monitoring, forensic audit capabilities and scalable infrastructure designed to accommodate increasing trading activity.
Prediction Markets Continue Their Institutional Evolution
The deployment reflects a broader transformation taking place across the prediction market industry. For much of their history, prediction markets operated outside mainstream exchange infrastructure. Today, however, operators seeking federal regulation are increasingly adopting the technology stack traditionally associated with regulated financial markets. That includes market surveillance, exchange-grade matching engines, clearing processes, risk controls and governance frameworks designed to meet regulatory expectations while supporting institutional participation. As competition intensifies, technology providers with established experience across futures, equities, foreign exchange and digital assets are finding new opportunities in the prediction market sector. For Eventus, the Novig deployment expands the reach of its Validus platform into another fast-growing asset class. The company already provides surveillance technology across equities, options, futures, fixed income, foreign exchange, digital assets and commodities, making prediction markets a natural extension of its product portfolio. Cameron Routh, CEO of Eventus, said:“As a modern, API-first exchange, integration quality and flexibility were priorities for Novig, and we’re gratified that the versatility of our platform and our team’s deep domain expertise and experience with regulated venues were important factors in our selection. We love when our clients recognize that trade surveillance plays a critical role in their long-term success and the trust they build with market participants. That’s why we’re laser-focused on providing powerful tools that can contribute to a healthy marketplace.”
