Comment Text:
NADEX’s Proposed Political Event Derivatives Contracts
Dear Sir/Madam:
Markets in general are functioning systems of interdependent parts that resemble a living thing — “organisms” that rarely have or are capable of developing intellectual conscience, especially if it involves trading of derivatives. We all know very well by now what brought the global financial system to its knees - the Derivatives’ Casino!
The last thing we need or can afford is to repeat the same errors for our political system that was bequeathed and entrusted to us by our founding fathers; i.e. dealing in political event derivatives contracts such as political election and appointment outcomes.
HedgeStreet, Inc. ("predecessor of NADEX”) verbally committed to the CFTC and the NASD during the Designation process that HedgeStreet does not intend to list the type of 'event' contracts thought of as possible surrogates for gambling activities, as well as externality to influence election outcomes — which is contrary to the public interest.
On a personal note, I trust the CFTC to save our political system of government. Dealing with CFTC’s commissioners and staff for many years, I find it to be one of the most thorough and diligent federal organization I have ever dealt with.
Best regards,
John Nafeh, Ph.D.
Founder of HedgeStreet (NADEX)
