26. CEA section 5c(c)(5)(C)(iv) provides that the Commission must take final action regarding its public interest determination “not later than 90 days from the commencement of [the Commission’s] review unless the party seeking to offer the contract or swap agrees to an extension.” 60 How should this time limit inform the Commission’s procedure for making public interest determinations? Considering this limitation, what steps would be appropriate, or not, for the Commission to take prior to making its determination? 27. Why, or why not, would it be appropriate for the Commission to propose any changes to its regulations related to procedures under CEA section 5c(c)(5)(C)? 28. If the Commission were to propose any changes to its regulations related to procedures under CEA section 5c(c)(5)(C), what considerations of costs and benefits would be relevant to those changes? What less costly alternatives should the Commission consider? Please provide any relevant specific information, data, or studies that you may have regarding the costs and benefits of such regulations or rule changes. E. Inside Information 29. The price on a prediction market could be viewed as an indication of how likely the underlying event is to occur. The price may be a more reliable indicator of probability if the people trading on the prediction market have some insight into how likely the underlying event is to occur. On the other hand, trading by these informed participants may lead to manipulation, unfairness, and the misuse of inside information. Is there some public interest utility if people with an asymmetric information advantage on a particular event contract are able to trade on prediction markets? Does the public
60 7 U.S.C. 7a-2(c)(5)(C)(iv).
25
Made with FlippingBook - Online catalogs