Updated
Updated · Bloomberg · Aug 12MEMX Seeks SEC Approval for Binary Earnings Bets on Public Companies
2 articles · Updated · Bloomberg · Aug 12Summary
- Tuesday night’s filing asks the SEC to let MEMX list prediction market-style option contracts tied to public companies’ financial results.
- The proposed products would offer separate binary bets on earnings, revenue and other corporate performance metrics.
- MEMX is positioning the new contracts to compete directly with the growing prediction-market model inside regulated financial exchanges.
Insights
Will the SEC classify MEMX's new corporate earnings contracts as security-based swaps and lock out everyday retail traders? As prediction markets explode, will Wall Street's newest binary contracts revolutionize price discovery or just legalize corporate gambling?