Interactive Brokers Group, Inc. announced the launch of ForecastEx LLC, a newly formed subsidiary that will begin operations on July 8, 2024.

ForecastEx has been designated by the Commodity Futures Trading Commission (CFTC) to operate as a contract market and derivatives clearing organization. The platform will enable commission-free trading of forecast contracts related to economic and climate events, including the U.S. Consumer Price Index and global temperature changes.

Milan Galik, CEO of Interactive Brokers, said that ForecastEx aims to provide clients with a unique opportunity to hedge risk and make informed decisions based on market-based forecasts. The launch of ForecastEx is in line with Interactive Brokers' commitment to innovation and providing advanced trading solutions to its clients.

The launch of ForecastEx comes at a time of growing interest in prediction markets, which are seen as valuable tools for gauging future economic and environmental trends. By offering prediction contracts on major economic and climate events, ForecastEx aims to meet the needs of traders looking for new ways to manage risk and capitalize on market opportunities.

Interactive Brokers' expansion into prediction markets underscores the company's commitment to diversifying its product offerings and staying ahead of the competition in the financial services industry. The move is expected to attract a wide range of clients, from retail traders to institutional investors, who are looking to harness the predictive power of the markets to inform their strategies.