CME Group and FanDuel Partner to Develop Innovative Event Contracts Platform
CME Group (NASDAQ: CME) and FanDuel have announced a strategic partnership to develop an innovative event contracts platform. The collaboration will create new fully funded, event-based contracts with defined risk, allowing FanDuel customers to trade on various market benchmarks including the S&P 500, Nasdaq-100, commodities, cryptocurrencies, and economic indicators.
The partnership involves forming a joint venture to operate a non-clearing futures commission merchant (FCM), enabling customers to place simple "yes" or "no" positions for as little as $1. The platform is expected to launch later in 2025, pending CFTC regulatory review, and will be available through all participating FCMs.
CME Group (NASDAQ: CME) e FanDuel hanno annunciato una partnership strategica per sviluppare una piattaforma innovativa di contratti su eventi. La collaborazione creerà nuovi contratti completamente finanziati, basati su eventi e con rischio definito, permettendo ai clienti di FanDuel di negoziare su diversi parametri di mercato come S&P 500, Nasdaq-100, materie prime, criptovalute e indicatori economici.
La partnership prevede la costituzione di una joint venture per gestire un futures commission merchant (FCM) non compensante, che consentirà ai clienti di assumere posizioni semplici “sì” o “no” a partire da appena $1. La piattaforma è prevista per il lancio nella seconda metà del 2025, soggetta a revisione normativa della CFTC, e sarà accessibile tramite tutti gli FCM partecipanti.
CME Group (NASDAQ: CME) y FanDuel han anunciado una alianza estratégica para desarrollar una plataforma innovadora de contratos por evento. La colaboración creará nuevos contratos completamente financiados, basados en eventos y con riesgo definido, permitiendo a los clientes de FanDuel operar sobre distintos puntos de referencia del mercado como el S&P 500, Nasdaq-100, materias primas, criptomonedas e indicadores económicos.
La asociación contempla la creación de una joint venture para operar como futures commission merchant (FCM) no compensador, lo que permitirá a los clientes tomar posiciones sencillas de “sí” o “no” desde tan solo $1. Se espera que la plataforma se lance a finales de 2025, pendiente de la revisión regulatoria de la CFTC, y estará disponible a través de todos los FCM participantes.
CME Group (NASDAQ: CME)와 FanDuel이 혁신적인 이벤트 계약 플랫폼을 개발하기 위한 전략적 파트너십을 발표했습니다. 이번 협업은 완전 자금 지원 방식의 이벤트 기반 계약을 새롭게 만들어 명확한 위험 한도를 제공하며, FanDuel 고객이 S&P 500, Nasdaq-100, 원자재, 암호화폐 및 경제 지표 등 다양한 시장 벤치마크에 거래할 수 있게 합니다.
파트너십은 비청산(futures commission merchant, FCM) 역할을 하는 합작 법인을 설립하는 것을 포함하며, 이를 통해 고객은 단순한 "예" 또는 "아니오" 포지션을 최소 $1부터 취할 수 있습니다. 이 플랫폼은 CFTC의 규제 검토를 거쳐 2025년 후반에 출시될 예정이며, 모든 참여 FCM을 통해 이용 가능할 것입니다.
CME Group (NASDAQ: CME) et FanDuel ont annoncé un partenariat stratégique pour développer une plateforme innovante de contrats liés à des événements. La collaboration donnera naissance à de nouveaux contrats entièrement financés, basés sur des événements et à risque défini, permettant aux clients de FanDuel de négocier sur divers indices de marché tels que le S&P 500, le Nasdaq-100, les matières premières, les cryptomonnaies et les indicateurs économiques.
Le partenariat prévoit la création d’une coentreprise pour exploiter un futures commission merchant (FCM) non compensateur, permettant aux clients de prendre des positions simples « oui » ou « non » à partir de seulement 1 $. Le lancement de la plateforme est prévu pour la fin 2025, sous réserve de l’examen réglementaire de la CFTC, et elle sera accessible via tous les FCM participants.
CME Group (NASDAQ: CME) und FanDuel haben eine strategische Partnerschaft angekündigt, um eine innovative Plattform für Event-kontrakte zu entwickeln. Die Zusammenarbeit wird neue, vollständig finanzierte, ereignisbasierte Kontrakte mit definiertem Risiko schaffen, die es FanDuel-Kunden ermöglichen, auf verschiedene Marktbenchmarks wie S&P 500, Nasdaq-100, Rohstoffe, Kryptowährungen und Wirtschaftsindikatoren zu handeln.
Die Partnerschaft sieht die Gründung eines Joint Ventures vor, das als nicht-clearing Futures Commission Merchant (FCM) tätig sein wird und Kunden einfache "Ja"- oder "Nein"-Positionen bereits ab $1 erlaubt. Der Start der Plattform ist für Ende 2025 geplant, vorbehaltlich der regulatorischen Prüfung durch die CFTC, und sie wird über alle teilnehmenden FCMs verfügbar sein.
- Strategic expansion into financial markets through partnership between two industry leaders
- Access to FanDuel's large customer base for new financial products
- Low entry barrier with $1 minimum investment makes markets more accessible
- Diversification of product offerings across multiple asset classes and indicators
- Success depends on pending CFTC regulatory approval
- Potential regulatory risks and compliance challenges in new market segment
- Additional costs and operational complexities from joint venture formation
Insights
CME and FanDuel's partnership creates new microtrading opportunities for retail customers, potentially expanding CME's reach to millions of new users.
This partnership between CME Group and FanDuel represents a strategic move to tap into the growing retail trader market with low-cost, binary event contracts. The alliance will offer simple yes/no positions on market benchmarks like the S&P 500, commodities, cryptocurrencies, and economic indicators for as little as
The structure of these contracts is particularly significant – they're fully funded with defined risk parameters, meaning users can't lose more than they wager. This addresses a key barrier for retail traders who fear unlimited downside in traditional derivatives. By allowing multiple daily trading opportunities across diverse asset classes, the platform creates a more accessible and engaging entry point to financial markets than traditional futures contracts.
For CME, this represents a clever strategy to expand beyond its institutional client base without cannibalizing its core derivatives business. The partnership essentially creates a new customer acquisition funnel, potentially converting some of these small-dollar traders into more sophisticated market participants over time. The regulatory framework is also noteworthy – these products will be CFTC-regulated and traded on CME exchanges, providing important consumer protections while differentiating this offering from less regulated alternatives.
This innovative partnership will build on CME Group's long track record of developing regulated, transparent markets, and FanDuel's vast customer reach. Together, the companies will develop new fully funded, event-based contracts with defined risk. Customers will be able to express their views multiple times a day on a wide range of markets with simple "yes" or "no" positions for as little as
Expected to launch later this year, the products will include benchmarks such as the S&P 500 and Nasdaq-100, prices of oil and gas, gold, cryptocurrencies, and key economic indicators such as GDP and CPI, with further details of additional offerings to be determined 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. "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."
"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, CEO of FanDuel Group. "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."
As part of the partnership, CME Group and FanDuel will form a new joint venture, under which they will operate a non-clearing futures commission merchant (FCM) that will facilitate access to these event-based contracts through FanDuel.
Pending CFTC regulatory review, event contracts will be listed on and subject to the rules of CME Group exchanges and available through all participating FCMs.
Forward looking statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect current expectations as to future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. In some cases, you can identify these forward-looking statements by the use of words such as "outlook", "believe(s)", "expect(s)", "potential", "continue(s)", "may", "will", "should", "could", "would", "seek(s)", "predict(s)", "intend(s)", "trends", "plan(s)", "estimate(s)", "anticipates", "projection", "goal", "target", "aspire", "will likely result", and or the negative version of these words or other comparable words of a future or forward-looking nature. Such forward-looking statements are subject to various risks and uncertainties and there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include, among others: the launch and success of the new joint venture and product is subject to various risks and uncertainties related to, among other things, the receipt of certain regulatory approvals, to the extent required, and the timing and conditions for such approvals; its terms, timing, structure, benefits, costs and completion; and the satisfaction of other conditions. The ability to predict results or actual effects of our plans and strategies is inherently uncertain. Accordingly, actual results may differ materially from those expressed in, or implied by, the forward-looking statements. In addition, we may incur additional or unexpected costs in connection with the matters discussed in this press release.
FanDuel Group and CME Group undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
About CME Group
As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and
About FanDuel
FanDuel Group is America's premier mobile gaming company, consisting of a portfolio of leading brands across mobile wagering including America's #1 Sportsbook FanDuel Sportsbook, its leading iGaming platform FanDuel Casino, the industry leader in horseracing and advance-deposit wagering FanDuel Racing, and its daily fantasy sports product. In addition, FanDuel Group operates FanDuel TV, its broadly distributed linear cable television network, and FanDuel TV+, its leading direct-to-consumer OTT platform. FanDuel Group has a presence across all 50 states with approximately 17 million customers and 25 retail locations. The company is based in
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SOURCE CME Group; Flutter; FanDuel
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