Overview

• FanDuel and CME are forming a joint venture that will operate as a non-clearing futures commission merchant using a CME-owned exchange rather than building a new venue.
• At launch later this year, contracts will reference the S&P 500 and Nasdaq-100, prices of oil and gas, gold, cryptocurrencies, and economic indicators such as GDP and CPI.
• The offering excludes sports at launch and will fall under CFTC oversight, while FanDuel’s traditional sportsbook remains regulated on a state-by-state basis.
• Trades are designed for low denominations starting at $1 to allow high-frequency participation, with FanDuel positioning the product for its more than 12 million registered users.
• Regulatory uncertainty looms as the CFTC’s clashes with platforms like Kalshi and its request that halted Robinhood’s Super Bowl contracts prompt calls for clearer rules, even as industry leaders predict rapid growth.