FanDuel and CME Group to Launch Event-Based Trading
FanDuel has partnered with CME Group to introduce new event-based financial contracts that will allow its customers to engage with regulated markets in a simplified way. The collaboration aims to broaden access to futures-style products while maintaining defined risk parameters and regulatory oversight.
Launch of Event-Based Contracts
CME Group and FanDuel announced that they will launch fully funded event-based contracts later this year, pending regulatory approval. These products will enable users to take “yes” or “no” positions on a variety of markets starting at $1. The contracts are designed to make market participation more accessible to individuals who may not currently trade traditional derivatives.
The initial set of contracts will cover major financial benchmarks and commodities. Customers will be able to trade positions linked to the S&P 500 and Nasdaq-100 indices, oil and gas prices, gold, cryptocurrencies, and key U.S. economic indicators such as GDP and the Consumer Price Index (CPI). Additional products are expected to be announced in the coming months.
Industry Leaders on the Partnership
CME Group Chairman and CEO Terry Duffy said:
“Individual investors are increasingly sophisticated and continually pursuing new financial opportunities. 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.”
Amy Howe, CEO of FanDuel Group, emphasized the opportunity to expand FanDuel’s product offering:
“Partnering with CME Group will unlock our ability to bring even more new and engaging products to FanDuel’s fast-growing customer base. 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.”
Regulatory Framework and Joint Venture
As part of the agreement, CME Group and FanDuel will establish a joint venture that will operate a non-clearing futures commission merchant (FCM). This entity will serve as the channel for offering the new contracts directly through FanDuel’s platform.
The contracts will be listed on CME Group exchanges and will remain subject to the Commodity Futures Trading Commission’s (CFTC) regulatory review and approval process. Once cleared, they will also be available via participating FCMs.
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