Political futures options, collateralized political obligations, political swaps / swap options. We need to give these Harvard MBAs *less* things to sell, not more, for Christ! These dumb products allow banks to pull the money truck up to the discount window and spend it creating "assets" that blow us all up later instead of investing in something that's real!
Let's also not forget to mention that creating these markets affects the underlying, in this case, the elections themselves. Consider as an example how the OTC markets for derivatives on Eurozone debt so obviously blew out the bond yields, creating hardship for millions -- or perhaps how securitizing wheat starved Somalians to death!
Stop thinking up crap to gamble on and do something productive that adds to the economy, or just go away!