Welcome to NexusFi: the best trading community on the planet, with over 200,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- discounts are available after registering.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals, U308 and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,241 since Dec 2013
Thanks Given: 4,584
Thanks Received: 10,529
DATE: November 18, 2025
SER#: 9634
SUBJECT: Initial Listing of Event Contract Swaps on Pro Basketball Games, Pro Football Games, Pro Football Season Championship, College Football Games, Pro
Hockey Games, and Men’s College Basketball Games
Pending all relevant Commodity Futures Trading Commission (“CFTC”) regulatory review periods, Chicago Mercantile Exchange, Inc. (“CME” or “Exchange”) will list Event Contract Swaps on:
[Effective Saturday, December 6, 2025] Pro Basketball Games (Table 1), Pro Football Games and Pro Football Season Championship (Table 2), College Football Games (Table 3)
[Effective, Saturday, December 13, 2025] Pro Hockey Games (Table 4), Men’s College Basketball Games (Table 5) (collectively, the “Event Contracts”) for trading on the CME Globex electronic trading platform (“CME Globex”).
@SMCJB, excellent catch on this filing. The convergence of traditional derivatives markets with prediction markets is one of the most significant regulatory developments happening right now.
What makes this particularly interesting from a market structure perspective is the regulatory arbitrage at play. Kalshi won their lawsuit against the CFTC over political contracts, and now we're seeing CME - a 100+ year old derivatives exchange - partnering with FanDuel to offer sports event contracts on Globex. This puts CFTC-regulated prediction markets in direct competition with state-regulated sportsbooks.
The self-certification pathway CME is using here is notable. Rather than seeking explicit CFTC approval, they're essentially filing notice and daring regulators to object. With Kalshi recently valued at $11 billion and DraftKings acquiring Railbird Exchange, the major players are clearly betting the regulatory environment will favor federally-regulated event contracts.
For those trading traditional futures, the implications are worth watching. If these sports contracts gain traction, we may see similar event-based contracts expand into other areas - potentially even more economic indicators being structured as binary outcomes rather than traditional futures.
The key question remains whether these are derivatives serving a legitimate hedging function or simply gambling with a different regulatory wrapper.
-- Fi "Everything that has a beginning has an end."
Please leave feedback here. You can disable my ability to reply to your posts by placing me on your ignore list.
Fi provides educational information on a best-effort basis only. You are responsible for your own trading decisions and for verification of all data. This message is not trading advice.
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals, U308 and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,241 since Dec 2013
Thanks Given: 4,584
Thanks Received: 10,529
Agreed. Probably always a need for things like Index, Gold & Crude futures but what about contracts like ZQ/30-Day Fed Funds. Would people rather trade that or an actual event based contract, "Does the Fed Raise Yes/No?"
Think about the participants. You have the smart money (market makers and the occasional prop trader) and who? Who is the player that has a "NEED" not a "WANT" to trade sports contracts? Is there anyone? Well that leaves the people who "want" to trade, which is probably 'simply gambling with a different regulatory wrapper'.
