CME Group Seeing Strong Prediction Market Volume, Account Growth
Posted on: April 28, 2026, 01:15h.
Last updated on: April 28, 2026, 01:15h.
- Exchange operator says event contracts volume topped $220 million
- Reiterates sports derivatives aren’t the goal of partnership with FanDuel
- Company says FanDuel’s FCM application doesn’t alter relationship
CME Group (NASDAQ: CME), the owner of the Chicago Mercantile Exchange (CME), is finding quick success in the prediction markets space while steering away from sports derivatives.
The exchange operator, which announced a partnership with Flutter Entertainment’s (NYSE: FLUT) FanDuel last August, delivered first-quarter results last week and executives highlighted strength in its still young event contracts offering. On a conference call with analysts, Tim McCourt, global head of alternative products, equities and foreign currency, said event contracts volume on the CME platform recently topped $220 million following its launch last December.
I think the notable thing from volumes is, again, as we were covering, is that the percentage of volume in markets-based contracts across the CME Group benchmark products in equities, cryptocurrencies, energy and metals is in excess of 30% since mid-March,” said the executive in response to an analyst question.
The arrangement with FanDuel is paying dividends for CME because the exchange operator has “had 150,000 accounts trade at CME Group,” according to McCourt.
CME Group Talks FanDuel Relationship
When the CME/FanDuel agreement was unveiled last year, the two sides made clear the prediction market offering would focus on event contracts linked to cryptocurrency, commodities, and equity index prices as well as economic data – not sports.
However, FanDuel is the largest online sportsbook operator in the US and some industry observers believe it’s just a matter of time before the company forges into sports derivatives. Some related signs emerged earlier this month when the gaming entity filed a futures commission merchant (FCM) application, stoking speculation it will pursue a sports event contracts play outside of its relationship with CME.
That may or may not happen and CME CFO and President Lynne Fitzpatrick notes FanDuel’s FCM application doesn’t alter CME’s relationship with the gaming company.
“I think it’s important to note the difference between an application and a launch,” she said on the conference call. “So similar to the way we started an application process, and it took several years to get that approval, they want to be prepared for any future changes and registration requirements or the like. So this actually doesn’t signify any change in our relationship or the partnership going forward.”
CME Chairman and CEO Terrence Duffy added FanDuel is contractually bound to not compete with the joint venture formed with the financial services company.
CME Could Reap Non-Sports Rewards
Avoiding sports derivatives is a smart play by CME on multiple levels. First, those event contracts are the source of the legal drama facing traditional prediction market operators, such as Kalshi and Polymarket. Second, the industry is attempting to shift away from its sports-centric roots in a bid to lure more professional traders.
The latter point is in CME’s balleywick and as Duffy points out, there’s not a lot of “noise” around prediction markets on financial products.
“I think you’re going to start to see other people probably leaning that direction more than just looking at the pure sports itself,” said the CEO on the conference call. “So we’ll have to wait and see, but I think that bodes very well for CME if in fact that goes there because potentially the offsets you can be looking at against our multiple asset classes that we have here at CME Group that others don’t.”
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