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CFTC moves to shut Irish 'prediction' site to most U.S. punters

Nov 27 2012 Stuart Gittleman, Compliance Complete

The Commodity Futures Trading Commission on Monday charged Dublin, Ireland-based Trade Exchange Network Limited ("TEN") and a subsidiary, Intrade the Prediction Market Limited, with violating a ban on offering off-exchange options trading to U.S. customers. The Commodity Exchange Act bars firms from offering this activity to all but the wealthiest U.S. individuals. A CFTC complaint filed in District of Columbia federal court also alleged that TEN and Intrade solicited, accepted and confirmed the execution of orders from U.S. customers and made false statements to the CFTC, and that TEN violated a cease and desist order. "It is against the law to solicit U.S. persons to buy and sell commodity options, even if they are called 'prediction' contracts, unless they are listed for trading and traded on a CFTC-registered exchange or unless legally exempt. The requirement for on-exchange trading is important for a number of reasons, including that it enables the CFTC to police market activity

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