Also, NYT Article was http://www.nytimes.com/2003/07/29/politics/29TERR.html?th But it sounds like they've chickened out, because various people freaked about the implications. (And they only got as far as it being "an incentive to commit terrorism", without getting to "a funding method for terrorism" or to "Assassination Politics".)
July 29, 2003 Pentagon Said to Abandon Plan for Futures Market on Terror By THE ASSOCIATED PRESS
WASHINGTON -- The Pentagon will abandon a plan to establish a futures market to help predict terrorist strikes, the chairman of the Senate Armed Services Committee said Tuesday.
Sen. John Warner, R-Va., said he spoke by phone with the program's director, "and we mutually agreed that this thing should be stopped."
Warner announced the decision not long after Senate Democratic Leader Thomas Daschle took to the floor to denounce the program as "an incentive actually to commit acts of terrorism."
Warner made the announcement during a confirmation hearing for retired Gen. Peter J. Schoomaker, nominated to be Army chief of staff.