Why bundles instead of short sales?
We use contract bundles to place contracts in circulation rather than short sales because: 1) in the markets we operate we can always define a contract bundle which is worth exactly $1.00 regardless of the outcome of the event on which the market is based, and 2) they provide an iron clad way to guarantee that the IEM neither makes nor loses money as a result of some trader defaulting on a short sale or a margin account.
