Interactive Brokers Delays ForecastEX Launch

Due to administrative challenges, Interactive Brokers delayed the ForecastEx launch. Later this summer, it will offer prediction markets on economic and climate events.

Key Points

• Interactive Brokers postponed the ForecastEx launch due to administrative issues, targeting a later summer start.
• ForecastEx secures CFTC designations for US economic and climate event trading.
• Interactive Brokers pioneer FCM involvement in ForecastEx, encouraging industry participation.

Interactive Brokers has announced a delay in the launch of ForecastEx, a prediction exchange specializing in economic and climate events. The postponement, attributed to administrative issues, pushes back the anticipated start date to later in the summer, according to Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers.

ForecastEx, a subsidiary of Interactive Brokers Group, initially planned to commence operations on July 8, 2024. However, the exchange has secured the necessary designations from the Commodity Futures Trading Commission (CFTC) to function as a contract market and derivative clearing organization.

Interactive Brokers Delays ForecastEX Launch

Steve Sanders highlighted that ForecastEx would enable clients in eligible countries to trade forecast contracts on US economic indicators such as Unemployment Claims, the Consumer Price Index, Retail Sales, and Housing starts. Global climate events will also be featured, including temperature and atmospheric CO2 levels.

“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,” Sanders remarked. He emphasized the simplicity of trading on ForecastEx, where clients simply choose YES or NO on forecast contracts reflecting the likelihood of specific events.

Thomas Peterffy, Founder and Chairman of Interactive Brokers, has been developing ForecastEx for nearly a decade, with earnest efforts commencing in November 2021. Sanders indicated that Interactive Brokers aims to invigorate the Futures Commission Merchant (FCM) community through its participation as ForecastEx’s first exchange member. The exchange is actively encouraging other FCMs to join.

Sanders expressed confidence in retail investors’ readiness to engage with ForecastEx’s instruments. “Contracts listed on ForecastEx are simple and intuitive, appealing to individual investors knowledgeable about economic trends,” he stated.

Interactive Brokers clients from eligible entities, including Interactive Brokers LLC, Interactive Brokers Hong Kong Limited, and Interactive Brokers Singapore Pte. Ltd., will access ForecastEx through IBKR ForecastTrader, a specialized trading platform.

Despite the delay, Interactive Brokers remains committed to launching ForecastEx later this summer. It anticipates significant interest from institutional and individual investors eager to explore these innovative trading opportunities.

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