tastytrade Enters Prediction Markets with CFTC-Regulated Event Contracts

tastytrade has launched its Prediction Markets feature, allowing customers to trade CFTC-regulated event contracts directly through its brokerage platform. The new service covers a range of macroeconomic events, central bank decisions, market indicators, commodities, and cryptocurrencies.

The launch comes as retail brokerages continue expanding into prediction markets. tastytrade's competitors, such as Robinhood and moomoo, have recently introduced or expanded similar offerings tied to economic events and real-world outcomes.

Prediction Markets is integrated into the existing platform, enabling customers to trade event contracts in a segregated account alongside stocks, options, and futures. Contracts settle to a yes-or-no outcome, with prices reflecting the market's implied probability of an event.

tastytrade focused on 'the catalysts our customers already trade: the Fed, the inflation print, the VIX, crude, crypto,' according to Pete Mulmat, Head of Brokerage at tastytrade. He added that traders can 'trade the event, not the reaction,' with 'defined risk,' 'a clear payoff,' and '24/7 access including the evenings and weekends when traditional markets are closed.'

The initial offering includes contracts linked to equity indices, Treasury yields, the VIX, the U.S. dollar, interest rate decisions by the Federal Reserve, ECB, Bank of England, and Bank of Japan, as well as economic indicators including CPI, PCE, nonfarm payrolls, GDP, and ISM data.