CHICAGO, Oct. 3, 2024
/PRNewswire/ -- ForecastEx LLC ("ForecastEx"), a CFTC registered
Designated Contract Market ("DCM") and Derivative Clearing
Organization ("DCO"), today announced the launch of Forecast
Contracts on upcoming election results. These contracts allow
customers of ForecastEx Members to trade their predictions on
political outcomes, to either hedge against election related
uncertainty, or profit from political insight. The election events
available for pairing starting at 7:15 AM CT
tomorrow October 4th, include
the following:
- Will Kamala Harris win the 2024 presidential
election?
- Will Donald Trump win the 2024
presidential election?
- Will the Democratic Party win a majority in the United States Senate during the 2024
general election?
- Will the Democratic Party win a majority in the United States House of Representatives
during the 2024 general election?
These contracts offer investors an easy way to take a position
on key political events. For example, if an investor believes
the United States Senate will be
under Democrat control in 2025, they can purchase a "yes" contract.
Conversely, if they believe the event will not occur, they can buy
a "no" contract. Contract prices range from $0.02 to $0.99,
reflecting the market's evolving consensus on the likelihood of
each outcome. E.g. $0.35 corresponds
to 35% probability. When the event outcome has been determined, the
holder of the contract associated with the correct outcome will
receive $1.00.
The payment obligation for each Forecast Contract is fully
secured by cash and 100% of the income earned from its investment
is distributed monthly to Members as an Incentive Coupon in
proportion to the daily closing value of their positions.
ForecastEx expects some Members to rebate a portion of this
Incentive Coupon to their customers.
Contracts for individual candidates in state elections are
expected to be added shortly. A complete list of economic, climate
and election based Forecast Contracts is available on the
website.
About ForecastEx:
ForecastEx is a wholly owned subsidiary of Interactive Brokers
Group, Inc (Nasdaq: IBKR), whose other subsidiaries include
Interactive Brokers LLC (IB LLC) and IB Global Investments LLC
(IBGI LLC). IB LLC, an FCM and broker, is a ForecastEx Member
approved to offer Forecast Contracts to its customers as well as
eligible customers of other non-U.S. broker affiliates on whose
behalf it provides execution and clearing services. IBGI LLC, an
Affiliated Customer of IB LLC, will operate as a liquidity
provider, maintaining Bids on both the "Yes" and the "No" of
various Event Markets. Pursuant to ForecastEx Rule 405(b), IBGI LLC
bids are always filled last by ForecastEx if equal in price to
another customer's bid.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/forecastex-llc-launches-contracts-on-us-election-outcomes-302267310.html
SOURCE ForecastEx LLC