Plus500 Ltd (LSE:PLUS) has been appointed the clearing partner for a new event-based contracts platform launched by CME Group and FanDuel, marking a notable expansion of its institutional business.
The company will provide brokerage, execution and clearing services to FanDuel Prediction Markets, a futures commission merchant jointly owned by CME and FanDuel.
Clearing houses sit at the centre of derivatives markets: they process trades, manage collateral and guarantee settlement, reducing the risk that one side of a trade cannot meet its obligations.
Plus500 said the agreement would allow the group to use its existing infrastructure to offer secure, scalable access for the platform’s clients.
The company described the partnership as further evidence of its strength in operating institutional-grade systems for execution, settlement and risk management.
It added that its proprietary technology and regulatory experience positioned it to support future event-driven trading products worldwide.
David Zruia, Plus500’s chief executive, said: “Being chosen to clear for this groundbreaking initiative is a historic milestone for Plus500. It reflects our capabilities as an accredited, trusted market infrastructure provider, built on proprietary technology, regulatory expertise, and a focus on institutional collaboration.
"It also demonstrates the superiority of our operational processes and status as a global multi-asset fintech group on the international stage. We are proud to work with the CME and FanDuel to broaden global market access for millions of new customers.”