FanDuel and CME Group partner up to offer event-based contracts
FanDuel and CME Group will work together to offer event-based contracts, the sportsbook announced last month. The partnership will give customers the ability to express their views multiple times a day on a wide range of markets with yes or no positions for $1 or more.
“Partnering with CME Group will unlock our ability to bring even more new and engaging products to FanDuel’s fast-growing customer base,” said Amy Howe, FanDuel Group CEO.
"We believe there is potentially a wide audience for trading event-based markets and we want to provide a platform that allows our customers to engage in this activity. We are excited to be partnering with CME Group to design new and engaging products, combining innovation with best-in-class regulatory compliance and consumer protections.” These event-based contracts are expected to launch this year.
According to FanDuel, benchmarks such as the S&P 500 and Nasdaq-100 will be included in the products to go along with prices of gas and oil, cryptocurrencies, and more. More details about additional offerings will be determined in the coming months, according to FanDuel and CME Group. FanDuel and CME Group will operate a non-clearing futures commission merchant (FCM) which will facilitate access to the contracts through FanDuel.
A new opportunity
“Individual investors are increasingly sophisticated and continually pursuing new financial opportunities,” said Terry Duffy, CME Group CEO.
“To meet this demand, we have created this innovative partnership, which will operate a non-clearing FCM. Together, our event-based products will appeal to the growing public interest in markets, and we will provide education to attract a new generation of potential traders not active in derivatives today.”
Following regulatory review, event contracts will be subject to the rules of CME Group exchanges and will be listed on CME Group exchanges. Event-based contracts will also be made available through participating FCMs. FanDuel and CME Group plan to offer these contracts in the United States.
About FanDuel and CME Group
FanDuel is one of Ontario’s regulated betting sites. The sportsbook takes bets on all of the biggest leagues and a ton of sports. FanDuel also offers a casino. FanDuel has over 360,000 followers on X/Twitter and over 230,000 followers on Instagram.
CME Group is a derivatives marketplace. With CME Group, clients have the ability to trade futures, options, analyze data, and more. CME Group offers futures and more through the CME Globex platform.
