CME Teams Up with FanDuel to Launch YesNo Financial Contracts as Equity Turnover Ranks 217th

On August 20, 2025, CME Group (CME) rose 1.15% with a trading volume of $0.48 billion, ranking 217th in equity turnover. The exchange operator announced a strategic partnership with Flutter Entertainment-owned sports betting platform FanDuel to launch event-based financial contracts. The collaboration aims to create a platform for yes-or-no wagers on market-related events, such as gold prices or S&P 500 index thresholds. CME CEO Terry Duffy emphasized the initiative's potential to attract a new generation of market participants through educational resources and accessible trading products.

The joint venture will establish a non-clearing futures commission merchant to facilitate access via FanDuel’s app. Regulatory approval from the Commodity Futures Trading Commission is pending for these contracts, which are slated for a late-2025 launch. Analysts note the move aligns with growing interest in prediction markets, where betting has expanded beyond sports into financial and political domains. The partnership reflects CME’s strategy to diversify its derivatives ecosystem and capture retail investor demand.

A backtesting analysis of a strategy purchasing the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 showed a 1-day return of 0.98% and a cumulative return of 31.52% over 365 days. This suggests the approach captured short-term momentum but also underscored market volatility and timing risks inherent in such strategies.