If you were hoping to bet big on the 2012 elections in the swaps and derivatives market, you just rolled snake eyes.
The Commodity Futures Trading Commission rejected a bid to have such bets permitted Monday.
The North American Derivatives Exchange had hoped to list "political event derivatives contracts," but the CFTC decided that they more resembled online bookmaking than legitimate financial contracts.
"CFTC determined that the contracts involve gaming and are contrary to the public interest, and cannot be listed or made available for clearing or trading," the agency declared.
The Chicago-based Nadex was not pleased, and said it would look at the ruling carefully.
"We felt strongly that these products met all legal and regulatory criteria for listing, and that the public would benefit from having these products traded on a well-regulated exchange, rather than an unregulated offshore venue as currently is the case," Nadex said in a statement.
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