Comment Text:
The Commission has to take strong regulatory action regarding event contract derivatives traded on prediction markets.
Prediction markets are raising serious concerns about market integrity, insider trading, and the commodification of events that should remain outside the realm of financial speculation.
Event contracts that allow wagering on military operations, foreign policy decisions, terrorism, assassination, or other government actions create unacceptable risks because individuals with nonpublic information about those decisions have both the opportunity and financial incentive to exploit that information.
Citizens perceive that government decisions may be influenced by private financial interests and this is eroding public trust.
