Published on: November 13, 2025, 03:11h.
Updated on: November 13, 2025, 03:11h.
- Leading exchange operator steps into the prediction markets sector.
- Exclusion of sports event contracts from the offering.
- Cboe’s prediction platform anticipated to launch soon.
Cboe Global Markets (BATS: CBOE) is set to introduce its own prediction markets platform, marking its entry into the expanding sector of event contracts.
During a conversation with Bloomberg, CEO Craig Donohue stated that Cboe aims to provide yes/no event contracts focused on economic data and financial markets to its clientele in the upcoming months. This marks a logical progression for a company already recognized as a leader in the derivatives market.
Cboe delivers trading solutions and products in various asset classes, encompassing equities, derivatives, and foreign currency across North America, Europe, and the Asia Pacific,” as per a recent press statement.
In October, the volume at Cboe’s four options exchanges hit an all-time high, reaching an average of 21.4 million trades daily. The surge in trading activity was attributed to a rise in multi-list options and index options, particularly in S&P 500 Index (SPX) derivatives and zero-days-to-expiry (0DTE) options.
Cboe Joins Competitors in Prediction Markets
Cboe becomes the latest significant US exchange operator to enter the prediction markets landscape. This shift began in August when CME Group (NASDAQ: CME) announced its collaboration with Flutter Entertainment’s (NYSE: FLUT) FanDuel. Recently, additional details surfaced regarding this partnership, indicating that FanDuel plans to offer sports event contracts in jurisdictions where sports betting is banned.
Last month, Intercontinental Exchange (NYSE: ICE), the parent company of the New York Stock Exchange (NYSE), committed $2 billion to the prediction markets giant Polymarket, elevating the company’s post-money valuation to between $9 billion and $10 billion.
During Cboe’s third-quarter earnings call two weeks ago, Donohue expressed the company’s enthusiasm for prediction markets and the applicability of its existing skills to this space.
“We aim to concentrate on event and prediction markets, as well as digital and crypto markets. There is tremendous growth potential in these areas,” he remarked. “I believe these sectors align perfectly with our core competencies, especially in retail offerings. We have pioneered shorter-dated contracts via 0DTE options, and the prediction market concept is simply another way to leverage our established expertise and success.”
Cboe Excludes Sports from Prediction Market Plans
It seems that sports event contracts will not feature in Cboe’s prediction market strategy, a decision that may be prudent, especially considering regulatory scrutiny faced by these derivatives across multiple states.
Moreover, the sports event contracts sector is already densely populated with competition, including established companies like Kalshi and Novig, along with forthcoming entrants such as DraftKings and FanDuel. Additionally, Polymarket is set to make a return to the US market this month.
In the realm of financial services, there are examples of successfully providing event contracts without involving sports. For instance, Interactive Brokers (NASDAQ: IBKR) has found success by focusing its yes/no derivatives on economic and financial data alone.