Cboe Global Markets CEO Craig Donohue, speaking in a Bloomberg interview on November 13, announced that the exchange will broaden its product lineup to include shorter‑term, capped‑risk contracts, marking a strategic pivot toward risk‑managed prediction markets.
The new contracts will be yes/no event contracts tied to economic and financial outcomes, with defined expiration dates ranging from a few days to a few weeks. The capped‑risk structure limits potential losses to the premium paid, making the products attractive to retail traders seeking speculative exposure and to institutional investors looking for hedging tools.
Donohue explained that the move leverages Cboe’s core derivatives expertise while avoiding the regulatory uncertainty of sports betting markets. By focusing on financial and economic events, the firm can capitalize on its existing market‑data infrastructure and client base, while mitigating litigation risk.
Cboe’s Q3 2025 results showed record net revenue of $605.5 million, up 14% year‑over‑year, and adjusted diluted EPS of $2.67, a 20% increase. The earnings beat was driven by strong demand for options and crypto derivatives, and disciplined cost management that offset the launch of new products. The company raised its full‑year 2025 revenue guidance to the low‑double‑digit growth range, reflecting confidence in the momentum of its core and emerging businesses.
Cboe joins rivals CME Group and Intercontinental Exchange in the prediction‑market arena, but differentiates itself by excluding sports events. The firm’s focus on financial and economic outcomes positions it to capture a niche with clearer regulatory footing and higher pricing power. The announcement also signals a broader strategic realignment, including the sale of non‑core assets and a renewed emphasis on derivatives and data services.
Donohue noted that the new contracts will launch in the coming months, with a phased rollout that will begin with a limited set of high‑interest economic indicators. The company expects the product line to contribute to revenue diversification and to attract new retail participants, potentially feeding into its broader suite of options and futures products.
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