Published on: April 28, 2026, 01:15h.
Updated on: April 28, 2026, 01:15h.
- CME reports event contracts volume has surpassed $220 million
- Reaffirms that sports derivatives are not the focus of collaboration with FanDuel
- Clarifies that FanDuel’s FCM application does not impact their existing partnership
CME Group (NASDAQ: CME), the parent company of the Chicago Mercantile Exchange (CME), is rapidly gaining traction in the prediction markets landscape while steering clear of sports-related derivatives.
The exchange, which solidified a partnership with Flutter Entertainment’s (NYSE: FLUT) FanDuel last August, recently disclosed strong first-quarter results showcasing a robust performance in its relatively new event contracts division. During a conference call, Tim McCourt, the global head of alternative products, equities, and foreign currency, noted that event contract volume on the CME platform has recently crossed $220 million since its launch in December.
“A notable detail regarding volumes is that the market-based contracts account for over 30% of our benchmark products across equities, cryptocurrencies, energy, and metals since mid-March,” the executive stated in response to an analyst’s inquiry.
The partnership with FanDuel is proving beneficial for CME, which has seen “150,000 accounts engage in trading at CME Group,” according to McCourt.
CME Group Discusses Relationship with FanDuel
When the collaboration between CME and FanDuel was announced last year, it was emphasized that the prediction market initiative would center on event contracts related to cryptocurrencies, commodities, equity index prices, and economic data—excluding sports.
Nonetheless, FanDuel, being the largest online sports betting operator in the United States, has led some industry analysts to speculate that the company may eventually delve into sports derivatives. This speculation intensified earlier this month following the gaming firm’s submission of a futures commission merchant (FCM) application.
While this potential move remains uncertain, CME CFO and President Lynne Fitzpatrick clarified that FanDuel’s FCM application does not alter the existing partnership with CME.
“It’s crucial to differentiate between an application and a launch,” she explained during the conference call. “The application process we underwent took years to secure approval. FanDuel aims to be ready for any future changes and registration needs. Thus, this situation does not reflect any shift in our relationship or partnership going forward.”
CME Chairman and CEO Terrence Duffy further noted that FanDuel is contractually obligated not to compete with the joint venture established with the financial services firm.
CME Set to Gain from Non-Sports Opportunities
By steering clear of sports derivatives, CME is making a strategically wise decision on multiple fronts. First, sports event contracts have led to legal complications for traditional prediction market operators like Kalshi and Polymarket. Second, there’s a broader industry move to evolve beyond sports-centric foundations to attract more professional traders.
This latter point aligns well with CME’s focus, as Duffy highlighted the absence of “noise” surrounding prediction markets focused on financial products.
“I believe we will witness a shift where more entities will gravitate toward financial markets rather than just the pure sports aspect,” the CEO commented on the conference call. “Time will tell, but this outlook could be extremely favorable for CME, particularly regarding potential offsets across the various asset classes we offer that others cannot.”