What we can and can't run stocks on

iPredict operates with the authorisation of the Securities Commission, and that authorisation comes with conditions on the kinds of contracts we run.

We can't do sports.

And we can't do entertainment.

So: no rugby, cricket, Oscars or Dancing With the Stars.

Anything else is ok? Or do you have a list of all the topics you must stick to?

Pretty much anything else is ok. Good taste matters - stocks that pay out on someone's death or on terrorism is probably out of bounds. Court cases might be interesting but I haven't begun to look at the legal position for us on that.

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And we can't do entertainment.

I note this rules out the Oscars. Does it also mean a blanket ban on any celebrity-style gossip? A ban on "entertainment" covers a broad base. Which of these would be acceptable?

• Victoria Beckham's next handbag to cost more than GBP 100,000
• Martin Henderson to get a star on Hollywood Walk of Fame
• This Is Your Life recipient to be...
• New Zealand Symphony Orchestra to tour Poland
• TV2 to be floated on the NZX

Where do you draw the line?

I was really looking forward to a "Who will play Lara Croft in the upcoming movie" stock :-(



Edited 2 time(s). Last edit at 01/29/2009 02:47PM by the_master.

Good questions Master. The short answer is we don't know exactly where the dividing line is, and we can't ask (well, actually, we can but we shouldn't expect an answer). I tend to think that entertainment related issues that primarily have a business or social component to them are likely to be ok. So, from your list, Beckham's handbag and Henderson's star (good luck to anyone going long on that one!) is firmly out but TV2 on NZX is probably ok as this has a strong business and political aspect to it. If we had been around in 1981 we might have been ok to ask questions like whether the Boks would tour, and how many games will protestors succeed in canceling, but certainly not to ask about the outcome of the games.

The prudent thing for us is to stay well away from entertainment - obviously the risk to the business is significant if we overstep the mark. We'll take advice on anything borderline before making a move.