Taxes are the largest class of risk people don’t hedge. Our Jason Ruspini (allied with InTrade) wants to change that.

Jason Ruspini, interviewed by Bloomberg:

Taxes “are the largest class of risk people don’t hedge,” said Jason Ruspini, a New York hedge fund analyst who established the market, which began trading last week. “Hopefully this year, with this election, there will be kind of an increased interest in this kind of thing.” [...] “If Democrats are perceived as having a greater chance to get in the White House these tax contracts will go up,” said Ruspini, who declined to identify his employer because the market he created isn’t related to it. “If McCain is elected they won’t go up as much.” [...] Right now, the market exists only for the top marginal income tax rate. Ruspini said he plans to have secondary markets based on Social Security taxes and whether Congress can restrain the alternative minimum tax from raising levies on tens of millions of households. [...] “This is such a young field at this point,” Ruspini said. “Ten years from now, it’s going to be a huge market. Whenever you have a contract where there’s a lot of hedging utility, that tends to be a successful contract in the long run.” [...]

Congrats to Jason.

Go read the whole piece.

Previously: Tax Futures, “In Real Life” – by Jason Ruspini