Comment Text:
Dear CFTC Recipient,
I am writing to you as a 31-year-old market data/forecast user and market enthusiast to express my views on the importance of election contracts, awards shows and contests, and sports contracts in the regulated marketplace.
As a market enthusiast, I closely follow various market activities and utilize market data to make informed decisions. This relevance is particularly significant when considering event contracts, as they provide a legal, regulated, and safe environment for trading. For example, election contracts offer a unique way to hedge and manage risks associated with political outcomes, which can significantly impact various industries and economic conditions.
Event contracts are essential because they are legal, regulated, and safe. These contracts are meticulously overseen by regulatory bodies, ensuring that participants are protected from fraud and market manipulation. The regulation of such activities not only secures the market but also allows for partnerships with reputable institutions, enhancing market liquidity and confidence.
Furthermore, regulated activity in this space ensures that markets generate valuable information. This regulation not only secures the market but also allows for partnerships with reputable institutions, such as the recent collaboration between Kalshi and Susquehanna International Group, enhancing market liquidity and confidence.
In light of the recent proposals by the CFTC, I would like to highlight that the election cop argument is not credible, and the definition of gaming is wrong and overbroad. The current interpretation undermines the potential benefits these contracts offer for risk management and market transparency. Additionally, driving such activities offshore would ignore the valuable data generated by these markets and reduce the oversight and safety that come with regulation.
Effective regulation requires a collaborative approach, and I urge the CFTC to engage more actively with stakeholders, consider comments, ask questions, and do the hard work to understand these markets. By doing so, the CFTC can ensure that all perspectives are adequately considered.
Therefore, I respectfully request the Commission to vote no on the proposed event contract rule to allow for more comprehensive feedback from the industry and ensure that all perspectives are adequately considered.
In conclusion, event contracts are legal, regulated, and safe, providing significant benefits by generating valuable market information. I appreciate your attention to this matter and look forward to a constructive dialogue on how best to regulate these essential contracts.
Thank you for your consideration.
Sincerely,
Ross
