London-listed Plus500 has been appointed as the clearing partner for FanDuel and CME Group’s new event-based contracts platform.
Plus500 will provide brokerage-execution and clearing services for FanDuel Predicts, a non-clearing Futures Commission Merchant (FCM) and joint venture between CME and FanDuel, which is expected to launch this month.
“Being chosen to clear for this groundbreaking initiative is a historic milestone for Plus500,” said chief executive David Zruia. “It reflects our capabilities as an accredited, trusted market infrastructure provider, built on proprietary technology, regulatory expertise, and a focus on institutional collaboration.
“It also demonstrates the superiority of our operational processes and status as a global multi-asset fintech group on the international stage. We are proud to work with the CME and FanDuel to broaden global market access for millions of new customers.”
FanDuel Predicts will launch as a standalone mobile application in the United States, providing access to sports event contracts across baseball, basketball, football and ice hockey.
In states where online sports betting is not yet legal, customers who are not on tribal lands will be able to trade event contracts on the outcome of sporting events. As new states legalise online sports betting, FanDuel will cease offering sports event contracts in those states.
In addition to sports, event contracts will be offered on benchmarks such as the S&P 500 and Nasdaq-100, prices of oil and gas, gold, cryptocurrencies, and key economic indicators such as GDP and CPI.
Shares in Plus500 Ltd (LSE:PLUS) were trading 3.15 per cent higher at 3,274.00 pence per share in London following the announcement, while shares in FanDuel parent Flutter Entertainment plc (NYSE:FLUT) closed 4.45 per cent higher at $208.81 in New York Friday.