CME Group and FanDuel have unveiled a partnership to create an event contracts platform designed to broaden access to financial markets for U.S. retail customers.
CME Group and FanDuel Announce Joint Venture, Partner to Launch Event Contracts Platform
The partnership will combine CME Group’s experience in developing regulated markets with FanDuel’s large online gaming customer base.
The companies plan to introduce fully funded, event-based contracts with defined risk, allowing individuals to take “yes” or “no” positions on a variety of financial benchmarks for as little as $1.
The new products, expected to launch later this year, subject to regulatory approval, will cover equity indices such as the S&P 500 and Nasdaq-100, energy commodities including oil and gas, precious metals, cryptocurrencies, and key U.S. economic indicators such as GDP and CPI.
The companies added that further offerings are set to be announced in the coming months.
“Individual investors are increasingly sophisticated and continually pursuing new financial opportunities,” said Terry Duffy, CME Group Chairman and Chief Executive Officer. “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, said: “Partnering with CME Group will unlock our ability to bring even more new and engaging products to FanDuel’s fast-growing customer base.”
We want to provide a platform that allows our customers to engage in this activity… combining innovation with best-in-class regulatory compliance and consumer protections.”
The joint venture will establish a non-clearing futures commission merchant to facilitate access to the contracts.
