The plaintiffs sought the higher court\u2019s decision because of concerns that the February 15 deadline for liquidation was approaching.<\/p>\n
In a briefing filed earlier on Thursday in advance of the February 8 hearing, the plaintiffs said the traders involved in the case face \u201cirreparable harm\u201d if the exchange is forced to close before the markets\u2019 natural conclusions.<\/p>\n
\nBecause of the imminent Feb. 15, 2023 liquidation deadline, the eight Appellants who are Market investors are being deprived of the value of having carefully invested in what they believe to be the most likely political outcomes,\u201d<\/strong> the filing stated. \u201cThey will not be able to see their contracts through to the end and realize the gain of having predicted correctly. More importantly, they lack a meaningful option to trade out of their 2024 election contracts, as spot prices are distorted for these contracts due to the CFTC\u2019s mandate that they terminate early.\u201d<\/strong><\/p>\n<\/blockquote>\nThe CFTC\u2019s response to the plaintiff\u2019s brief is due on Wednesday.<\/p>\n
What is PredictIt?<\/h2>\n The PredictIt exchange is similar to a stock exchange, where traders can buy or sell up until the event in question \u2013 such as the 2024 presidential election \u2013 concludes.<\/p>\n
Traders buy contracts on a certain position \u2013 such as Florida Gov. Ron DeSantis winning the race \u2013 for an amount between a penny and 99 cents. If the contract is for the correct outcome, the trader receives $1 for each contract or share they own.<\/strong><\/p>\nResearchers use the trading data to determine if the futures markets serve as better predictors of political races. The data is also used for studies in such fields as microeconomics and game theory.<\/p>\n
\n
The exchange was proposed by the Victoria University of Wellington, a New Zealand school, for research purposes. In 2014, the CFTC granted the exchange a no-action letter, meaning the agency would not seek to stop it if it met certain conditions. Those conditions included limits on the number of traders per market and the amount that traders could invest in a specific market.<\/p>\n<\/div>\n
In its revocation letter, the CFTC said PredictIt violated the terms of the no-action letter, but did not cite any specific condition it violated.<\/p>\n","protected":false},"excerpt":{"rendered":"
Trades on political futures at PredictIt will be allowed to continue past February 15, at least temporarily, after a federal appeals court granted the online exchange an injunction on Thursday. The move by the US Fifth Circuit Court of Appeals comes a week after that court set a hearing for February 8 to hear arguments […]<\/p>\n","protected":false},"author":45,"featured_media":256026,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[60,61],"tags":[82218,82192,82190],"acf":[],"yoast_head":"\n
PredictIt Gets Reprieve, for Now, as February 15 Liquidation Deadline Halted<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n