TradeSports Pays a fine to CFTC

Thanks to Chris Masse for pointing me to it this interesting story. TradeSports got fined for trading option contracts to US citizens without regulatory approval and oversight.

From the CFTC's press release:

"The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing and simultaneous settlement of charges under the Commodity Exchange Act (CEA) that Trade Exchange Network Limited (TEN), a limited liability company based in Dublin, Ireland, solicited and accepted orders from U.S. residents for commodity option contracts that were not excepted or exempted from the Commission’s ban on options. TEN owns and operates an Internet-based trading platform that facilitates trading through its websites www.Tradesports.com, www.Intrade.com, and www.TradebetX.com."

The full statement.

By the way, Tradesports and other so-called decision markets are an excellent way to learn about how markets work. For instance how neew information gets incorporated into the price.