April 26, 2024

DealBook: Intrade Bars U.S. Bettors After Regulatory Action

Intrade.com, an online prediction market where wagers can be made on real-world events.Intrade.com, an online prediction market where wagers can be made on real-world events.

Facing accusations that it allowed American investors to bet on the outcome of wars and other world events without the blessing of regulators, Intrade announced on Monday that it was closing its Web site to United States residents.

The disclosure, which referred to “legal and regulatory pressures,” was released hours after American authorities sued the company, which is based in Dublin, over its popular trading network. Investors log on to Intrade by the thousands to bet on the outcomes of elections, the weather and even whether the United States will bomb Iran.

But in a civil complaint filed in federal court in Washington, the Commodity Futures Trading Commission took aim at the company and an affiliate for offering the contracts outside traditional exchanges and without regulatory approval. The agency also accused the companies of “making false statements” to regulators and violating a past order barring it from offering so-called prediction contracts outside traditional exchanges.

“Unfortunately this means that all U.S. residents must begin the process of closing down their Intrade accounts,” the company said on its Web site. “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.”

An Intrade representative did not immediately respond to a request for comment.

The company, created in 1999 by an Irish businessman who died last year after coming within 50 yards of the summit of Mount Everest, recently gained prominence as a gambling hub for both professional and amateur investors. Following the model of Wall Street derivatives, Intrade customers buy and sell contracts tied to the outcome of a future event.

The site positioned itself as a sort of crystal ball for major world events, aggregating individual opinions and signaling the popular wisdom on, for instance, presidential elections. Intrade bettors correctly predicted President Obama’s 2008 victory and his re-election this month. The site, which accurately anticipated the capture of Saddam Hussein in 2003, is now putting the odds of a United States or Israeli airstrike against Iran at 31 percent.

But the company’s business model in the United States is on murky legal ground. Some states explicitly outlaw gambling on elections. The trading commission this year also rejected the North American Derivatives Exchange’s plans to offer an election contract.

In the complaint on Monday, the agency skirted the larger question of whether investors could legitimately bet on elections. Instead, it cited Intrade for allowing American customers to trade off-exchange contracts. From late 2007 through mid-2012, according to the agency, Intrade “unlawfully solicited and permitted U.S. customers to buy and sell” futures contracts.

“The requirement for on-exchange trading is important for a number of reasons, including that it enables the C.F.T.C. to police market activity and protect market integrity,” David Meister, the agency’s director of enforcement, said in a statement. “Today’s action should make it clear that we will intervene in the ‘prediction’ markets, wherever they may be based, when their U.S. activities violate the Commodity Exchange Act or the C.F.T.C.’s regulations.”

The trading commission’s complaint further accuses Intrade — and an affiliated company, Trade Exchange Network Ltd. — of filing bogus annual forms with the agency. The companies, the complaint said, misled the agency into thinking that they limited their contracts to “eligible” investors.

Trade Exchange Network, the complaint said, also failed to honor a 2005 agreement that it halt improper trading. At the time, the company paid a $150,000 fine.

A version of this article appeared in print on 11/27/2012, on page B2 of the NewYork edition with the headline: Intrade Bars U.S. Bettors After Regulatory Action.

Article source: http://dealbook.nytimes.com/2012/11/26/after-regulatory-sanction-intrade-closes-to-u-s-investors/?partner=rss&emc=rss

Career Couch: It’s Not Mount Everest. It’s My Workload.

A. First, realize that you are far from alone. Many people working today feel overloaded, says Susan Zeidman a portfolio manager at the American Management Association who specializes in interpersonal communication skills and management. “People feel as if they have two or three jobs, not just one. It’s the No. 1 complaint from the recession among people we survey,” she says.

One way to approach the topic is to acknowledge that you have acquired more responsibility in the last year and want to rise to the challenge, but could use some help in judging what tasks need to be done first and which ones can wait, says Ann Latham, president of the management consulting firm Uncommon Clarity in Easthampton, Mass. .

“Your attitude should be that you want to prevent yourself from having to cut corners or having the wrong things fall through the cracks,” she says, “because that’s in the best interests of the company.”

Before talking to your boss, carefully analyze the components of your workload to gain an objective picture of the situation, says Allan R. Cohen, a professor of global leadership at Babson College in Babson Park, Mass., and co-author of “Managing for Excellence.” Find out who receives the reports, memos and other work projects you do — and whether they actually use them.

“That’s how you determine what activities are critical, what can be dropped and whether some pieces can be delegated,” he says. “It will also help you decide if there are any activities you are doing more for your own satisfaction than for meeting organizational needs. People often produce reports no one looks at.”

When you meet with your manager, have some options ready for dealing with your workload and frame the discussion in terms of how you can do a better job, Mr. Cohen says.

Q. Is it possible you could damage your career by asking for help?

A. You risk negative fallout only if you complain to your boss that you can’t handle your job. “Don’t go in there saying, ‘I have too much work’ because your boss has too much work, too,” says Joanna Broussard, president of the BizMark Group, a business development consulting firm in Chicago. “It’s much more politically astute to offer some solutions and ask for support.”

And, as Ms. Zeidman says, “If you cannot complete your work and meet deadlines, you’re much more likely to suffer consequences.”

Q. Is there anything you can do to lighten the load on your own, like delegating some work to colleagues?

A. If you have a collaborative relationship with co-workers who do similar work, you can ask if they can help you with certain tasks, but generally it’s better to go through the chain of command, Ms. Latham says.

Let your supervisor decide whether work should be delegated and to whom, because it’s possible co-workers may be busier than they seem. “You can always suggest someone else on your team that might be able to handle some of the work, but I wouldn’t directly delegate to others unless you’re specifically given that authority,” Ms. Broussard says.

Q. Could it be that the way you work, rather than your workload, is to blame?

A. It is possible that your problem isn’t too much work, but a lack of efficiency. Ms. Zeidman suggests keeping an interruption log to see if constant distractions — whether from people, e-mail or Facebook updates — might be why you aren’t meeting your obligations.

“Let’s say you’ve planned your day but people come into your office and sit down and talk about their vacation while you need to do your budget report, or there are always crises calling you away,” she says. “It might be that it takes you an hour to settle into work in the morning.” Once you identify the things that are eating away at your time, you can tackle them by trying to stop the interruptions or getting down to work faster.

It may seem paradoxical, but you can raise your efficiency by taking breaks during the day — a quick walk, a few stretches, a visit to a colleague down the hall. Just don’t use the breaks to procrastinate, Ms. Broussard says.

You may also need more training or better tools to improve your efficiency, Mr. Cohen says. “Look at colleagues that do the same sorts of things you do,” he says. “Are they faster? And, if so, what tools are they using?”

Q. Is there a way to prioritize tasks so the workload feels more manageable?

A. Yes, by prioritizing work so you perform the toughest tasks first, Ms. Broussard says. “We tend to do the easiest and simplest things first, because we don’t want to deal with the hard stuff,” she says, “but the harder stuff is what we need to do.”

To make the big projects less daunting, break them down into smaller pieces. “Sometimes,” she says, “we feel overwhelmed simply because we don’t know where to start.”  

E-mail: ccouch@nytimes.com.

Article source: http://feeds.nytimes.com/click.phdo?i=86234478c15b08e446ba6c52946b183a