MEMX files rule change to list equities-based prediction contracts in the U.S.

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MEMX prediction contracts proposal

Highlights

MEMX filed a rule change with the SEC to list Equities Based Exchange Prediction Contracts (EPCs) on MEMX Options, with contracts priced from $0.01 to $0.99.
EPCs allow investors to trade YES and NO contracts on objective company metrics like earnings and revenue, leveraging a single liquidity pool and central clearing.
Interactive Brokers plans to distribute EPCs, with MEMX targeting an early 2027 launch pending SEC approval and operational readiness.

SEC filing outlines product structure

As announced by MEMX, the company has filed a proposed rule change with the U.S. Securities and Exchange Commission that would allow MEMX Options to list Equities Based Exchange Prediction Contracts, or EPCs.

The contracts are designed as event-based products linked to objective, measurable indicators of a listed company’s performance, including earnings, revenue, sales and other issuer-specific metrics. Investors would be able to trade paired YES and NO contracts priced from $0.01 to $0.99.

MEMX says the products would trade on MEMX Options, a registered national securities exchange, and would use central clearing alongside know-your-customer controls and the exchange’s existing regulatory and market-surveillance programs. Chief Executive Officer Jonathan Kellner says the structure is intended to give investors a more direct way to express a view on a single financial outcome, such as a widely followed key performance indicator disclosed in a company’s 10K.

Broker support points to broader market use

MEMX says the contracts let investors with opposing views trade directly against one another in a single pool of liquidity, reducing the need for additional intermediation. That structure positions the product as a targeted tool for trading around company disclosures and other stock-specific events.

Interactive Brokers indicates it plans to distribute the contracts when they become available. Chief Executive Officer Milan Galik says prediction markets offer investors a simple way to take positions on important market events and could provide another tool for managing risk around company announcements or expressing a view on individual stocks.

Subject to SEC approval and operational readiness, MEMX is targeting an early 2027 launch for EPCs through Interactive Brokers and other distribution partners. The plan signals continued exchange interest in regulated event-contract products tied to financial markets.

Our earlier article on New York City’s inquiry into prediction-market platforms highlighted how regulators are escalating scrutiny over event-contract products, focusing on alleged deceptive, youth-targeted marketing and related compliance risks. It also underscored the broader legal tension between state authorities applying gambling laws and federal oversight, leaving major platforms operating amid ongoing regulatory uncertainty.

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