CFTC Cracks Down On Intrade
Intrade, the online prediction market that gained popularity as an informal oddsmaker for the presidential election, shut itself to U.S. customers Monday after regulators charged it with illegally facilitating bets on future economic data, the price of gold and even acts of war.
Hours after the Commodity Futures Trading Commission filed a complaint in federal court, Intrade posted in its user forum and on its news page that it could no longer allow U.S. residents to trade “due to legal and regulatory pressures.”
“Today’s action should make it clear that we will intervene in the ‘prediction’ markets, wherever they may be based, when their U.S. activities violate” laws and rules enforced by the agency, CFTC enforcement director David Meister said in a statement.
By requiring that options be traded on approved exchanges, Meister said, regulators can “police market activity and protect market integrity.”
Handcrafted by Flip on November 27, 2012 |
TrackBack URL for this entry:
Listed below are links to weblogs that reference CFTC Cracks Down On Intrade: