Interactive Broker Cites ‘Administrative Challenges’ to Delay Prediction Exchange Launch

The launch of ForecastEx, a prediction exchange specializing
in economic and climate events, has been postponed until later in the summer
due to administrative issues, according to Steve Sanders, EVP of Marketing and
Product Development at Interactive Brokers.

ForecastEx Market Designations Approved

ForecastEx, a wholly-owned subsidiary of Interactive Brokers
Group, has received the required designations from the Commodity Futures
Trading Commission (CFTC) to operate as a contract market and derivative
clearing organization. The exchange was originally planned to begin operations
on Monday, July 8, 2024.

Steve Sanders informed Traders Magazine that ForecastEx will
allow Interactive Brokers’ clients in eligible countries to trade forecast
contracts on the probabilities of future US economic and global climate events.

He explained that US economic events encompass Unemployment Claims, the
Consumer Price Index, Retail Sales, Fed Funds, Housing Starts, and others,
while global climate events include temperatures and atmospheric CO2 levels.

“To trade, clients simply choose YES or NO on a forecast
contract,” Sanders said. “We have been interested in this topic for a very long time,
and it is a good way to understand the consensus view on controversial issues,”
he added.

ForecastEx Targets FCM Engagement

Thomas Peterffy, Founder and Chairman of Interactive
Brokers, has been working on and experimenting with ForecastEx for nearly ten
years. Sanders noted, “But we’ve had other priorities.” “We started earnestly working on it in November 2021,”
Sanders stated.

Interactive Brokers is the first Futures Commission Merchant
(FCM) to join ForecastEx as an exchange member. Sanders mentioned,
“Reinvigorating the FCM community is a big part of ForecastEx’s model and
ForecastEx is actively reaching out to other FCMs to join in the effort.”

Eligible individual and institutional investor clients of
Interactive Brokers LLC, Interactive Brokers Hong Kong Limited, and Interactive
Brokers Singapore Pte. Ltd. will be able to trade forecast contracts on IBKR
ForecastTrader, a speciality trading platform .

Sanders believes that retail investors are sophisticated
enough to invest in these types of instruments. “Contracts listed on ForecastEx
are simple and intuitive, and individual investors with knowledge of the
economy could be interested in these contracts,” he said.

The launch of ForecastEx, a prediction exchange specializing
in economic and climate events, has been postponed until later in the summer
due to administrative issues, according to Steve Sanders, EVP of Marketing and
Product Development at Interactive Brokers.

ForecastEx Market Designations Approved

ForecastEx, a wholly-owned subsidiary of Interactive Brokers
Group, has received the required designations from the Commodity Futures
Trading Commission (CFTC) to operate as a contract market and derivative
clearing organization. The exchange was originally planned to begin operations
on Monday, July 8, 2024.

Steve Sanders informed Traders Magazine that ForecastEx will
allow Interactive Brokers’ clients in eligible countries to trade forecast
contracts on the probabilities of future US economic and global climate events.

He explained that US economic events encompass Unemployment Claims, the
Consumer Price Index, Retail Sales, Fed Funds, Housing Starts, and others,
while global climate events include temperatures and atmospheric CO2 levels.

“To trade, clients simply choose YES or NO on a forecast
contract,” Sanders said. “We have been interested in this topic for a very long time,
and it is a good way to understand the consensus view on controversial issues,”
he added.

ForecastEx Targets FCM Engagement

Thomas Peterffy, Founder and Chairman of Interactive
Brokers, has been working on and experimenting with ForecastEx for nearly ten
years. Sanders noted, “But we’ve had other priorities.” “We started earnestly working on it in November 2021,”
Sanders stated.

Interactive Brokers is the first Futures Commission Merchant
(FCM) to join ForecastEx as an exchange member. Sanders mentioned,
“Reinvigorating the FCM community is a big part of ForecastEx’s model and
ForecastEx is actively reaching out to other FCMs to join in the effort.”

Eligible individual and institutional investor clients of
Interactive Brokers LLC, Interactive Brokers Hong Kong Limited, and Interactive
Brokers Singapore Pte. Ltd. will be able to trade forecast contracts on IBKR
ForecastTrader, a speciality trading platform .

Sanders believes that retail investors are sophisticated
enough to invest in these types of instruments. “Contracts listed on ForecastEx
are simple and intuitive, and individual investors with knowledge of the
economy could be interested in these contracts,” he said.

This post is originally published on FINANCEMAGNATES.

  • Related Posts

    The Week’s Snapshot: Donald Trump’s Victory and Crypto, ASIC to Close 95 Firms, and More

    Trump Victory Ushers In First Bitcoin-Friendly Administration In a major development on the world stage this week, Donald Trump won the election, sweeping the Electoral College and the popular vote.…

    CySEC Warns of Fake Regulator Scams on TrustPilot, Google Business

    Scammers are taking to public review websites like TrustPilot and Google Business to impersonate representatives of the Cyprus Securities and Exchange Commission (CySEC), misleading investors into paying bogus fees, the…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Trump 2.0 and the impact on European gas market

    • November 10, 2024
    Trump 2.0 and the impact on European gas market

    US, Britain launch raids on Yemeni capital Sanaa, elsewhere, Al Masirah TV says

    • November 10, 2024
    US, Britain launch raids on Yemeni capital Sanaa, elsewhere, Al Masirah TV says

    US, Mexico reach agreement on Rio Grande water deliveries amid drought, shortages

    • November 9, 2024
    US, Mexico reach agreement on Rio Grande water deliveries amid drought, shortages

    Volatile Markets: Mistakes Investors Make and How to Avoid Them

    • November 9, 2024
    Volatile Markets: Mistakes Investors Make and How to Avoid Them

    Profit Taking in Trading: An Approach to Conquer Fear and Greed

    • November 9, 2024
    Profit Taking in Trading: An Approach to Conquer Fear and Greed

    🎯 Stop System Hopping & Start Winning: Unleash Your Inner Trading Edge!

    • November 9, 2024
    🎯 Stop System Hopping & Start Winning: Unleash Your Inner Trading Edge!