Comment Text:
I have extensively used event contracts as a risk management consultant, such as those offered by Kalshi, to help clients navigate the uncertainties associated with political events. Election contracts, in particular, provide valuable insights into potential political outcomes and their economic implications, allowing for more effective risk management strategies.
These contracts give a clear and regulated place to assess market expectations about political outcomes, which is crucial for understanding potential policy shifts and their impact on businesses and investments. The data generated by these contracts creates a more transparent market for everyone.
The proposed restrictions on election contracts by the CFTC would remove an essential tool for risk management and market transparency. These contracts are not speculative; they are legal, regulated, and offer significant utility in providing accurate and timely data. Restricting them would drive this activity to unregulated markets, increasing risks and reducing the quality of available data.
I strongly oppose the proposed rule and urge the Commission to consider the broader benefits of these contracts. Extending the comment period and engaging with stakeholders would provide a more comprehensive understanding of their positive impact on market efficiency and risk management.
Thank you for considering my perspective.
