The Orlando Sentinel
MIAMI - Just in time for the beginning of peak hurricane season, the University of Miami`s controversial hurricane futures market is open for trading, but with a new name and new rules limiting who can bet on where a storm will strike.
Originally known as MAHEM, for the Miami Hurricane Event Market, the Hurricane Futures Market debuted Friday for Tropical Storm Irene, but only for up to 100 meteorologists who have been invited to participate.
As of Friday night, though, only six had already signed up and were authorized to begin gambling away a $100 incentive provided through a University of Miami grant. That`s how much the professors who launched the market as a research venture will place in the account of every trader who accepts the invitation.
Economist David Letson said he and his co-founders, fellow economist David Kelly and meteorologist Dave Nolan, opted to go the private, invitation-only route to avoid regulation by the Commodities Futures Trading Commission.
They hope, however, to convince the commission that their market is an economic-indicator market and not subject to regulation.
