Fanduel teams up with CME to debut event contract platform
CME Group, a leading global derivatives marketplace, and FanDuel, a part of Flutter Entertainment, have announced a new joint venture to develop and operate a non-clearing futures commission merchants (FCM). This partnership aims to create a unique offering of event-based contracts, which are expected to launch later in the year.
The new FCM will facilitate access to these event-based contracts through FanDuel, allowing customers to express their views on various markets multiple times per day with "yes" or "no" positions for as little as $1. The contracts will include benchmarks such as the S&P 500, Nasdaq-100, oil and gas prices, gold prices, cryptocurrency prices, GDP, and CPI.
CME Group Chairman and CEO Terry Duffy stated that the event-based products developed in partnership with FanDuel will appeal to the growing public interest in markets. The companies are founding a joint venture to develop new, fully funded, event-based contracts with defined risk, which are planned to be available by the end of this year.
The event contracts will be listed on CME exchanges, pending a regulatory review by the Commodity Futures Trading Commission. This move comes after CME Group reported an elevated Average Daily Volume in July during Q2. However, it's important to note that CME Group was recently cut at UBS due to a slowdown in activity.
In other news, CME Group Inc. (CME) Q2 2025 Earnings Conference Call Transcript is available for those interested in a deeper understanding of the company's financial performance. CME Group has outlined a $1.635B expense target while expanding its retail and international presence.
In after-hours trading, CME Group shares slipped 0.6%. Investors may want to consider that CME Group is unlikely to achieve market-beating returns, given its size and market position. Nonetheless, the potential introduction of event-based contracts could bring a fresh dynamic to the market and attract new investors.
Stay tuned for more updates on this exciting partnership between CME Group and FanDuel.
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