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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsIntrade shut down for US residents
Due to lawsuit brought by the The Commodities Futures Trading Commission
http://www.marketwatch.com/story/intrade-says-us-customers-must-close-accounts-2012-11-26
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Intrade shut down for US residents (Original Post)
HERVEPA
Nov 2012
OP
I always wondered why they could operate and other online gambling is banned.
former9thward
Nov 2012
#2
Insane. There is no reason we can't place political or any other kinds of bets we
RB TexLa
Nov 2012
#9
liberal N proud
(60,347 posts)1. Is this over the election?
HERVEPA
(6,107 posts)4. Not directly, presumably. Check the link
former9thward
(32,097 posts)2. I always wondered why they could operate and other online gambling is banned.
Whether you are playing poker, horses or elections it is all the same. I support gambling, online or otherwise, if people want to do it but the federal government view things differently.
PoliticAverse
(26,366 posts)7. Exactly. This is why Intrade hasn't been legal for US residents.
Same as online Poker playing.
Lint Head
(15,064 posts)3. All things come to those who wait.
banned from Kos
(4,017 posts)5. This is due to Dodd-Frank - which I support
but I hate this.
HERVEPA
(6,107 posts)6. Can you elaborate on how Dodd-Frank relates to this
I'm curious, since I am liquidating now as they request.
banned from Kos
(4,017 posts)10. Briefly, Dodd-Frank requires an "open" trading platform.
http://www.cftc.gov/LawRegulation/DoddFrankAct/index.htm
Intrade cannot comply.
If you sold oil futures on Intrade that sale would not register as on a market exchange.
Now, if I sell on NYMEX I see that that trade if I am on another exchange. Intrade cannot join an exchange like NYMEX because it is too expensive.
Intrade cannot comply.
If you sold oil futures on Intrade that sale would not register as on a market exchange.
Now, if I sell on NYMEX I see that that trade if I am on another exchange. Intrade cannot join an exchange like NYMEX because it is too expensive.
PoliticAverse
(26,366 posts)12. This has nothing to do with Dodd-Frank, as the article indicates...
this is a continuation of a complaint going back to 2005 (which predates Dodd-Frank).
banned from Kos
(4,017 posts)14. the nail in the coffin
“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,”
Like I pointed out Intrade would never comply as a CFTC-registered exchange. A Romney administration might not enforce this (to their credit).
And how exactly did Intrade solicit? By putting up a website?
PoliticAverse
(26,366 posts)15. "A Romney administration might not enforce this (to their credit).".
Yeah I'm sure Romney wouldn't have enforced a lot of securities laws.
SomethingFishy
(4,876 posts)8. Oh my! Whatever will I do with all this extra money
I was going to use for investments.. 
RB TexLa
(17,003 posts)9. Insane. There is no reason we can't place political or any other kinds of bets we
want to over the computer or even television.
WinkyDink
(51,311 posts)11. You'll live.
RB TexLa
(17,003 posts)13. I know. I can place the actual bets in other countries
And it doesn't have to be structured as a futures to do so.
Ruby the Liberal
(26,219 posts)16. How much of their US traffic was commodities?
What I don't get is that while I know people game/daytrade commodities, that has to be a percentage of a fraction of their US markets. CFTC is toothless (not that Brooksley Born didn't try to put some teeth into them, like getting derivatives regulated), so why are they spooked?
Couldn't they have just cut that access off based on location?
Ruby the Liberal
(26,219 posts)17. Intrade Memo to US Customers:
ATTENTION U.S. CUSTOMERS
Monday, Nov 26, 2012
We are sorry to announce that due to legal and regulatory pressures, Intrade can no longer allow US residents to participate in our real-money prediction markets.
Unfortunately this means that all US residents must begin the process of closing down their Intrade accounts. We strongly urge you to begin this process immediately:
Step 1: Close out open predictions
You must close out all open predictions before 8:00am GMT (3:00am ET) on December 23, 2012. Instructions on how to close out an open prediction can be found HERE.
If this is not done then by the deadline noted above, Intrade will close out your predictions for you at what we consider to be fair market value as of the daily session close of December 23, 2012.
Fair market value will be determined using current and historical price information, including daily close prices and recent trades.
Values will be set at the absolute discretion of Intrade and will not be open for review, discussion or argument – our determination of fair market value is final.
Step 2: Withdraw funds
Please note, no customers will be charged the $4.99 monthly fee due on December 1, 2012.
Members have until December 31, 2012, to withdraw all funds from their account. Instructions on how to request a withdrawal can be found HERE.
To help you receive your funds as quickly and easily as possible, the $20 fee normally charged by Intrade for processing a bank wire withdrawal will be waived. Please be aware however that any fees charged by the sending and receiving bank, plus any intermediary bank the transfer is routed through will NOT be refunded by Intrade.
We understand this announcement may come as a surprise and a disappointment, and we apologize for the short notice and haste required to deal with this. We would like to sincerely thank all US customers for their custom, support and loyalty over the years.
Monday, Nov 26, 2012
We are sorry to announce that due to legal and regulatory pressures, Intrade can no longer allow US residents to participate in our real-money prediction markets.
Unfortunately this means that all US residents must begin the process of closing down their Intrade accounts. We strongly urge you to begin this process immediately:
Step 1: Close out open predictions
You must close out all open predictions before 8:00am GMT (3:00am ET) on December 23, 2012. Instructions on how to close out an open prediction can be found HERE.
If this is not done then by the deadline noted above, Intrade will close out your predictions for you at what we consider to be fair market value as of the daily session close of December 23, 2012.
Fair market value will be determined using current and historical price information, including daily close prices and recent trades.
Values will be set at the absolute discretion of Intrade and will not be open for review, discussion or argument – our determination of fair market value is final.
Step 2: Withdraw funds
Please note, no customers will be charged the $4.99 monthly fee due on December 1, 2012.
Members have until December 31, 2012, to withdraw all funds from their account. Instructions on how to request a withdrawal can be found HERE.
To help you receive your funds as quickly and easily as possible, the $20 fee normally charged by Intrade for processing a bank wire withdrawal will be waived. Please be aware however that any fees charged by the sending and receiving bank, plus any intermediary bank the transfer is routed through will NOT be refunded by Intrade.
We understand this announcement may come as a surprise and a disappointment, and we apologize for the short notice and haste required to deal with this. We would like to sincerely thank all US customers for their custom, support and loyalty over the years.
