Under Dodd Frank, Congress defined the term "swap" so that it was quite broad, seemingly over-broad. (See, ?") As it happens in the real world, the very broad definition of "swap" has not had too much in the way of ill-effects. Generally, market participants understood - words of the statute notwithstanding - what a swap was, that Congress was not going to rethink its definition, and that there was no real harm done if there was some uncertainty around the edges.

Until now.

On…

The expansion of the "short" position definition to include arranged borrows will likely create a very material increase in the number of reported shorts.  

In addition to any legal uncertainty regarding whether personal device communications were required to be kept, the practical reality was that the communications technology advanced ahead of the recordkeeping technology.  Firms did not have the technology to maintain the communications and it is not practical to require that firms abstain from using a communications technology that has become common place and is used by the firm's clients.  

Whatever one concludes as to…

Forty-one AGs agreeing on something tells you that the issue is not one of political partisanship. The question on the scope of prediction contracts - whether  regulated by the CFTC (or perhaps the SEC) or by the States - is better settled by Congress than by the Courts. Of course, that assumes Congress is able to reach some agreement.

That said, election contracts should be permissible and regulated by the CFTC. National elections are clearly events of national economic…