Comment Text:
Please take strong regulatory action regarding event contract derivatives traded on prediction markets. The current prediction markets allow for insider trading and betting on events that should remain outside the realm of financial speculation. I am especially concerned about event contracts that allow wagering on military operations, foreign policy decisions, terrorism, assassination, or other government actions. This creates unacceptable risks because individuals with nonpublic information about those decisions have both the opportunity and financial incentive to exploit that information. When citizens perceive that government decisions may be influenced by private financial interests, public trust of our government is eroded. In addition, our enemies could determine government actions before they occur by following the contract derivative market.
