CFTC Bars White House Election Derivatives as Gambling Contracts

Bloomberg reports:

U.S. regulators barred a Chicago exchange from allowing trades in derivatives tied to the outcome of the 2012 U.S. elections, deciding that the transactions would constitute gambling and undermine the public interest.

The North American Derivatives Exchange sought to offer contracts tied to the outcome of the elections and whether Democrats or Republicans would control the U.S. House, Senate and White House. The U.S. Commodity Futures Trading Commission, which regulates futures contracts tied to wheat, oil, natural gas and other commodities, said yesterday that it ordered the exchange not to list election contracts for clearing or trading.

But, MegaMillions and Powerball isn't gambling!