Finance News

Story: Brokers Grab New Prediction Market Tools as Regulators Circle

By Dan Saada

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Prediction markets got real tools this week. Leverate dropped a white-label platform that lets brokers offer event contracts without building anything in-house, promising a…

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Devexperts jumped in too, rolling out infrastructure for CFD brokers who want to add event contracts to their existing platforms.

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The exchange partnered with Tradeweb Markets to push its event contracts into mainstream distribution channels.

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Numbers back up the growth story. Kalshi's notional volume hit $8.1 billion by February 22, with daily trades averaging around $370 million. They're projecting $10.

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Regulators dropped a warning about insider trading and fraud in prediction markets. The Commodity Futures Trading Commission called out specific cases where KalshiEX users traded…

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Product classification remains murky though. Some event contracts look suspiciously like banned binary options, which creates jurisdictional headaches for brokers.

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Leverate's white-label solution caught attention from brokers looking to diversify fast. The platform promises easy integration - no development team needed, just plug and play.

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The DriveWealth partnership, announced February 15, aims to integrate event contracts into DriveWealth's API-first architecture.

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Andy Ross brings serious credibility to Kalshi's institutional efforts. His background at Standard Chartered and CurveGlobal gives him deep connections in traditional finance.

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Tradeweb's involvement adds another layer of legitimacy. The fixed-income trading platform has established relationships with major banks and asset managers.

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Tarek Mansour, Kalshi's co-founder, acknowledged the CFTC advisory on February 25. He emphasized transparency and ethical trading practices, which sounds like damage control but…

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The CFTC's warning wasn't subtle. They're clearly concerned about market manipulation and insider trading in prediction markets.

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Volume growth continues despite regulatory uncertainty. Daily trading on Kalshi often exceeds $370 million now, with some days hitting much higher numbers around major events.

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Brokers face a tough choice. The revenue potential looks real, but regulatory risks are climbing.

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The CFTC's enforcement actions targeted specific patterns of abuse. Agency officials identified cases where traders used non-public information about corporate earnings,…

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