Decisions being made in Washington are increasingly consequential for the future of private industry. Two Internet entrepreneurs sense an opportunity in giving businesses and individuals a chance to hedge their financial risk when it comes to changes in public policy.
The American Civics Exchange is the country’s first commercial market for political futures. The Web-based market allows individuals to trade contracts that are priced based on the expected financial impact of certain policy decisions. Current contracts available for trading include those based on an increase in the capital gains or dividend income tax rate, enactment of a “card check” labor organizing bill and enactment of “cap and trade” climate legislation.
The market’s initial version allows only “play money” trades. Trading for cash will begin shortly.
Source: CQ Weekly, April 6, 2009, by Emily Cadei
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