The Commodity Futures Trading Commission, which monitors futures and options markets, has banned the North American Derivatives Exchange from offering political event contracts. A political event contract would allow an investor to wager on who they thought would win, say, the presidential election this fall, or congressional elections.
The issue appears to be how closely linked these contracts are to gambling. Many states — and even Las Vegas — have already prohibited such wagers. There was also concern that supporters of a candidate could use the contracts to “game” the election, by buying large positions in a candidate and driving public opinion in his or her favor. Read