IEM Pioneered Markets' Use for Political Races

A story about the use of futures markets to predict the outcome of the U.S. presidential election says the idea of applying futures trading to politics was pioneered at the UNIVERSITY OF IOWA in 1988. Over the years the Iowa Electronic Markets has been more reliable in predicting presidential voting than most polls, particularly in the last weeks of races. Though designed as a not-for-profit research tool for students and professors, that program operates with the blessing of the CFTC using real money, with a maximum wager of $500.