U.S. regulators barred a Chicago exchange from allowing tradesin derivatives tied to the outcome of the 2012 U.S. elections,deciding that the transactions would constitute gambling andundermine the public interest.

The North American Derivatives Exchange sought to offercontracts tied to the outcome of the elections and whetherDemocrats or Republicans would control the U.S. House, Senate andWhite House. The U.S. Commodity Futures Trading Commission, whichregulates futures contracts tied to wheat, oil, natural gas andother commodities, said yesterday that it ordered the exchange notto list election contracts for clearing or trading.

“We felt strongly that these products met all legal andregulatory criteria for listing, and that the public would benefitfrom having these products traded on a well-regulated exchange,”Tim McDermott, general counsel at Nadex, said in an e-mailedstatement.

Continue Reading for Free

Register and gain access to:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.