CME Group and FanDuel to launch event-based trading contracts

CHICAGO/NEW YORK - CME Group (NASDAQ:CME), the $99 billion market cap derivatives exchange with an impressive 18% year-to-date return, and FanDuel, part of Flutter Entertainment (NYSE:FLUT, LSE:FLTR), announced Wednesday a partnership to develop event-based trading contracts aimed at retail investors. According to InvestingPro data, CME maintains robust financial health with strong cash flows and a 3.98% dividend yield.

The collaboration will create fully funded contracts allowing customers to take simple "yes" or "no" positions on various markets for as little as $1. The products, expected to launch later this year pending regulatory review, will cover benchmarks including the S&P 500, Nasdaq-100, commodity prices, cryptocurrencies, and economic indicators.

As part of the agreement, the companies will establish a joint venture operating as a non-clearing futures commission merchant (FCM) to facilitate access to these contracts through FanDuel’s platform.

"Individual investors are increasingly sophisticated and continually pursuing new financial opportunities," said Terry Duffy, CME Group Chairman and CEO, in the press release.

Amy Howe, CEO of FanDuel Group, stated: "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."

The contracts will be listed on and subject to CME Group exchanges’ rules and available through participating FCMs, according to the companies.

The partnership aims to leverage CME Group’s experience in developing regulated markets and FanDuel’s extensive customer base in the United States. The initiative represents an effort to attract new participants to derivatives markets by offering simplified trading products with defined risk parameters. CME’s strong market position is further detailed in the comprehensive Pro Research Report, available exclusively on InvestingPro, which reveals additional insights about the company’s 23-year track record of maintaining dividend payments and its current financial metrics.

In other recent news, CME Group reported its second-quarter 2025 earnings, which exceeded analyst expectations. The company announced an earnings per share of $2.96, surpassing the forecasted $2.93, and revenue reached $1.7 billion, beating the projected $1.68 billion. Additionally, CME Group declared a third-quarter dividend of $1.25 per share, which will be paid on September 25, 2025. In analyst actions, UBS downgraded CME Group from Buy to Neutral, citing challenging comparisons ahead despite the company’s strong year-to-date performance. Conversely, Raymond James raised its price target for CME Group to $309, maintaining an Outperform rating due to the firm’s robust outlook and suite of risk management tools. This positive outlook is attributed to the potential upside if market volatility increases. These developments reflect recent strategic and financial activities within CME Group.

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