CFTC Halts Nadex's Election Betting Proposal

Law360, New York (January 5, 2012, 5:12 PM EST) -- The U.S. Commodity Futures Trading Commission has put a stop to the North American Derivatives Exchange's proposal to let investors bet on the outcome of elections and will conduct a 90-day review, the agency announced Thursday.

In a letter the CFTC sent Nadex on Tuesday, the regulator expressed its concerns that the political event derivatives contracts Nadex had conceived could violate federal and state gambling laws, among other concerns.

The commission will examine Nadex's idea for 90 days to end April 2, beginning with 30 days...
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