Comments on: Does InTrade participate on its own prediction markets? http://www.midasoracle.org/2010/03/19/does-intrade-participate-on-its-own-prediction-markets/ Prediction Markets, etc. Thu, 02 Feb 2012 23:13:18 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jason Ruspini http://www.midasoracle.org/2010/03/19/does-intrade-participate-on-its-own-prediction-markets/#comment-27626 Jason Ruspini Fri, 19 Mar 2010 23:17:01 +0000 http://www.midasoracle.org/?p=20839#comment-27626 I am told that some market makers do not pay transaction costs. The anonymous trader may likewise be over-generalizing his own experience of margin requirements. But even if Intrade takes arbs on its markets, that's quite a different animal from what happened this week. It almost sounds like you're confusing the CFTC and SEC, Max, but I'm giving you the benefit of the doubt! The Cantor contracts do present novel scenarios for the relevant commission though. I am told that some market makers do not pay transaction costs. The anonymous trader may likewise be over-generalizing his own experience of margin requirements. But even if Intrade takes arbs on its markets, that’s quite a different animal from what happened this week.

It almost sounds like you’re confusing the CFTC and SEC, Max, but I’m giving you the benefit of the doubt! The Cantor contracts do present novel scenarios for the relevant commission though.

]]> By: Max Keiser http://www.midasoracle.org/2010/03/19/does-intrade-participate-on-its-own-prediction-markets/#comment-27625 Max Keiser Fri, 19 Mar 2010 17:40:32 +0000 http://www.midasoracle.org/?p=20839#comment-27625 The bigger and more immediate question: can the CFTC be trusted to adequately regulate similar abuses from showing up on CantorX? The argument that Hollywood needs hedging mechanisms because of the extreme uncertainty of making movies can be viewed conversely; that is, probably in no market/exchange yet launched - falling under a regulatory oversight body - has the potential for insider trading and market manipulation presented itself to so many players with such a long track record of just such abusive behaviour. Given the recent track record of the CFTC - finding itself compromised in a thicket of conflict of interest cases - I think it's almost a dead certainty that mixing the fraud of Wall St. with the hype of Hollywood will result in a market going very bad, very quick. It's too bad my Virtural Specialist Tech. is being used to destroy yet another American industry, but the rogue hedge funds and corrupt regulators have voracious appetites and they'll stop at nothing. The bigger and more immediate question: can the CFTC be trusted to adequately regulate similar abuses from showing up on CantorX?

The argument that Hollywood needs hedging mechanisms because of the extreme uncertainty of making movies can be viewed conversely; that is, probably in no market/exchange yet launched – falling under a regulatory oversight body – has the potential for insider trading and market manipulation presented itself to so many players with such a long track record of just such abusive behaviour.

Given the recent track record of the CFTC – finding itself compromised in a thicket of conflict of interest cases – I think it’s almost a dead certainty that mixing the fraud of Wall St. with the hype of Hollywood will result in a market going very bad, very quick.

It’s too bad my Virtural Specialist Tech. is being used to destroy yet another American industry, but the rogue hedge funds and corrupt regulators have voracious appetites and they’ll stop at nothing.

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