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Prediction Market Site InTrade Bans US Customers
MyFirstNameIsPaul writes "In an announcement dated Monday, Nov 26, 2012, Dublin-based InTrade stated 'that due to legal and regulatory pressures, InTrade can no longer allow U.S. residents to participate in our real-money prediction markets.' The Washington Post reports that the Commodity Futures Trading Commission filed a complaint in federal court against InTrade for 'illegally facilitating bets on future economic data, the price of gold and even acts of war,' demonstrating just how far the long arm of U.S. law can reach."
"InTrade can no longer allow U.S. residents to participate in our real-money prediction markets"..."demonstrating just how far the long arm of U.S. law can reach"
US law being applied to US residents?! Outrageous!
Is the long arm of the law reaching too far? Sounds like a gambling company was operating in the US, or at least for US customers. Gambling is illegal (unless the government is in on it, a discussion for another day :) in the US. Therefore they filed a complaint. Sounds like everything is legit.
"Here Lies Philip J. Fry, named for his uncle, to carry on his spirit"
The US law affecting the US citizens, what's that got to do with "long arm"?
Fuck systemd. Fuck Redhat. Fuck Soylent, too. Wait, scratch the last one.
The Feds' problem is that it's effectively a futures/options market in many respects, and such instruments are to be traded on regulated exchanges. Intrade is not so regulated, thus they are being excluded from the US market.
I have said it and will say it again. You with your vote (or your non voting) got the people into Congress who limited your ability to bet on future events. Don't complain about the laws Congress makes!
I, for one, am very glad these unlicensed options traders are getting stamped out! There's no room in the economy for these shenanigans! Just think what could happen if people started massively trading options on unregulated exchanges - people would start speculating, maybe betting on, say, housing prices going up or down, and before you know it, we could have a housing assets bubble that would burst, bring down the economy and require massive government bailouts! I'm so glad that options trading is restricted only to regulated, licensed exchanges where such things couldn't ever happen......
The lesson here is this: if you're a small person trying to speculate - that's bad! If you're a giant investment bank trying to speculate - go right ahead, just as long as your dealer^H^H^H exchange is "regulated".
No brokerage in the UK will allow a "US person" to open an account. This has been true for at least 3 years and probably more.
The real "Libtards" are the Libertarians!
I have said it and will say it again. You with your vote (or your non voting) got the people into Congress who limited your ability to bet on future events. Don't complain about the laws Congress makes!
Voting or not voting has nothing to do with complaining. At this point, we are too far gone for 'elections' to make any difference. Our freedom went out the window when we decided that 50+1 % can make law. That is called the tyranny of the majority. For some it takes away freedom to intrade, for others freedom to smoke pot, for some the ability to buy and sell raw milk, or sleep on a mattress without fire retardants, or continue to purchase incandescent light bulbs.
It is becoming more and more obvious that these restrictions are not for our own good, or even for the children. It is simply about control - getting millions of people to do or not do something at the will of our leaders. When we as people do that to animals, it is called a farm - and they are called cattle. What does that make you?
I had money down at InTrade betting that this was going to happen. Now how am I supposed to get my money!?
The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
To put a finer point on this, Standardized derivative contracts that trade on an exchange are heavily regulated. Option and future markets tend to be abused by inside traders, fast talking high pressure brokers, etc.
Most derivative contracts (by notional amount), however, trade OTC and are lightly regulated. Think SWAPs, CDOs, etc. However, the traders are large companies which are heavily regulated and are (supposed) to have sophisticated risk and capital controls.
"Listen, the government gave you a choice between Goldman Sachs and Goldman Sachs in the last election, so you can't complain that Goldman Sachs is raping your future!"
Yes, that follows logically . . .
And that is why America is doomed. It's race to the bottom, and we're all "winning".