Monday, April 2, 2012

CFTC bans exchange from trading option contracts on 2012 election

Washington, DC – The Commodity Futures Trading Commission (CFTC) today issued an order prohibiting the North American Derivatives Exchange (Nadex) from listing or making available for clearing or trading a set of self-certified political event derivatives contracts. The contracts are binary option contracts that pay out based upon the results of various U.S federal elections to be held in 2012.

Nadex self-certified the contracts on December 19, 2011, and on January 3, 2012, the CFTC initiated a 90-day review period of the contracts. The CFTC determined that the contracts involve gaming, an activity that is unlawful under State or Federal law and is contrary to the public interest. The contracts cannot be listed or made available for clearing or trading. By a separate letter, the CFTC also requested that Nadex withdraw its self-certification of related rule amendments that were submitted by Nadex to enable trading of the contracts.

Posted By Valerie Garner

Categories: Election 2012, Elections, National, Politics

Tags: ,

Comments (1)


April 3rd, 2012 at 1:06 AM    

“Contracts [tied to the outcome of the U.S. elections] involve gaming and are contrary to the public interest.”
Well said CFTC.
The future of our country is not a game.

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