Comment Text:
THE HONORABLE CFTC COMISSIONERS
Sir/Madam Commission Secretary,
My name is John Nafeh, founder of the first CFTC Designated Binary Option Market and Registered Clearing Organization (HedgeStreet) in 2004, and I am also the holder of the first US Patent for binary options. Now I am retired and thought to add my voice to the subject above.
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 outcome.
HedgeStreet, Inc. 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 with saving 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.
John Nafeh, Ph.D.
Founder of HedgeStreet
