Chicago-based derivatives exchange CME Group plans to launch financial contracts linked to sports events and economic indicators before the end of the year, competing with prediction-market operators Kalshi and Polymarket, according to Bloomberg.
CME intends to distribute the new products through futures commission merchants, including one being developed with sportsbook operator FanDuel. Shares in DraftKings, a rival to FanDuel, dropped about 3.8% in post-market trading after reports of the project before recovering some losses.
CME announced its collaboration with FanDuel this year to create contracts tied to economic data. CEO Terry Duffy hinted in August that sports could follow, saying the exchange was “operationally ready” to list such products.
