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Breakingviews: Fifty shades of gray markets

Tuesday, March 12, 2013 - 03:38

March 12 - The abrupt shuttering of Intrade sparks a conversation among Breakingviews columnists about sites and markets that operate in somewhat shadowy zones.

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When the market's favorite play things as of mysteriously disappeared a site called in trade where you could bet on me. We have results of the US election or on the price of gold shut down on Sunday. Under mysterious circumstances don't really know exactly what happened. But it showed a little bit light on on the issue of great markets and exactly how they operate because this was sort of operated in a weird place exactly that was the whole reason they they thought they survived was that they operate in this weird flights for. But -- would you notice that they were yes kind of like no we aren't we aren't we -- actually betting say no we're not we're not without spot Lamar and I -- Mercury not a futures were just where is -- trade. And regulators -- now that's not true Canadian and last year the CFTC price futures national. Came out and said. I'm sorry you have to stop days instead of you -- actually betting on a contract for a commodity you were actually just guessing -- the price and put it away -- that has it been any different here. -- -- disease and there is -- and therefore it US customers are not allowed US clocks ought to make. But it's funny thing is that is this -- This was kind of half half -- the the contracts overcome the offensive making a -- about them and trade this kind of like. Financial. Product of exchange as a commodity price and off like what do you do down of the cookies you've threatened to put money on who's gonna win the election though. And in trade obviously became quite famous because that video and see what you market we think it's honestly we're just his election I guess. People were looking at its. -- -- -- before that was different that different primary candidates to become a presidential candidates and kind of using it as a proxy -- You know what. The money if not -- harmony with the money was thinking about these things and try to try to count through the the rhetoric it was a political reporting and gets us. That the number of a million it to somebody says it was useful in retrospect an -- -- evidence perfect but his -- him. I've ever right a lot of I -- you know there -- a lot of other places that operate in maybe a lighter shade of gray and whether it's a second market. There -- even some you know some sort of anxiety or aesthetics like small cap. Stock exchanges and other -- process first there's regulatory problems a lot of these things they operate in the same sort of in tripping or liking it they're hope they've got a slight dodge in and -- -- they can escape regulators like. The sports betting site they say because fantasy football game of skill not games gambling. Yeah right we'll see -- -- El Salvador and like about five years ago seven years ago there were all these UK betting sites that. Had a lot of poker units poker players played. And nails that lower overseas you know we don't markets US things we've we've we're we're above board. And then congress passed and all congress passed laws saying that thing -- -- the credit cards couldn't clear payments and these sites lost about 60% in value overnight and it couldn't let's. Both the units give it to trade a little bit what happened to them and they were. You know that -- an island you know a lot of financial type companies and I end up -- -- -- relatively friendly jurisdiction for them but they were up. They sort of I think made they didn't have US customers but once the CFTC actually climb down it -- -- they didn't miss that business. Dried up as I understand that probably has -- to do with the irregularities that seem to have that led to being closed we. Very little politics on that one end up other grave markets as they weren't moving back with more breaking views tomorrow.

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Breakingviews: Fifty shades of gray markets

Tuesday, March 12, 2013 - 03:38