2010 Congressional Control Markets FAQ

Liquidation values in these markets are determined after the election takes place. As stated in our market prospectuses, any Senator or Representative is considered Republican (denoted by "R" in the contract name) for purposes of contract liquidation, if one of the following two conditions is true.

     1.  He or she was elected in the current election and was the official Republican nominee on the election ballot, or
     2.  He or she was not up for election and his or her party affiliation was listed as Republican in the most recent Congressional Quarterly Weekly Report at the time of the election.
Everyone else is grouped with "Democrat and Independent" (denoted "D" in the contract name) for purposes of contract payoffs.

On Saturday, October 22, contract names were changed to more clearly reflect the way contact payoffs are determined. Each "D" in the contract names was replaced with "NR" (not Republican). This change clarifies payoff rules. It does not affect the way contract payoffs are determined.

Because we have had several questions about how particular situations affect contract payoffs, we provide the following examples.
     1.  Party affiliation for a candidate elected in 2010 is determined by the ballot. In the Alaska election for U.S. Senate, Lisa Murkowski is running as a write-in candidate. The official Republican nominee on the ballot is Joe Miller. If Ms. Murkowski wins the senate seat, she will be counted as an "NR" outcome because she is not the official Republican nominee on the ballot.
     2.  Party affiliation for a Senator not up for election is determined by his or her party affiliation as stated in the Congressional Quarterly Weekly Report (CQ Weekly Report). Senator Joe Lieberman is not up for election and is currently listed as an Independent in the CQ Weekly Report. Regardless of his voting record, his party affiliation for purposes of contract payoff will be determined by the CQ Weekly Report at the time of the election. Thus, if his party affiliation is still reported as Independent in the CQ Weekly Report immediately preceding the election, he will be counted as an "NR" Senate seat for purposes of contract liquidation.