Press release
Interactive Brokers Launches Forecast Contracts on Economic and Climate Indicators
GREENWICH, Conn.--(BUSINESS WIRE)-- Interactive Brokers Group (Nasdaq: IBKR), an automated global electronic broker, announced that its wholly-owned
About this update from Interactive Brokers Group, Inc.
[{"type":"text","content":" GREENWICH, Conn.--(BUSINESS WIRE)--\nInteractive Brokers Group (Nasdaq: IBKR), an automated global electronic broker, announced that its wholly-owned subsidiary, the CFTC-regulated ForecastEx LLC, started operations on August 1, 2024. Clients of Interactive Brokers from eligible countries can now trade Forecast Contracts on upcoming economic data releases and climate indicators.\n\n\nForecast Contracts through ForecastEx facilitate a unique trading approach, allowing investors to hedge against or express conviction on the outcome of key economic and climatic events. The contracts provide a direct method for investors to protect their portfolios from volatility related to economic indicators or climate patterns. They are especially relevant for those invested in cyclical stocks and sectors like industrials, consumer discretionary, and real estate, which are highly sensitive to economic fluctuations.\n\n\nThomas Peterffy, Founder and Chairman of Interactive Brokers, stated, “Businesses and investors must continuously reevaluate their expectations to try to determine whether their investment and business strategies fit optimally with unfolding economic, demographic and climate trends. ForecastEx markets will reflect the consensus probabilities of market participants that certain levels of future economic or climate measures will fall within specific ranges.”\n\n\nIf an investor believes an event will occur, such as an increase in the US Consumer Price Index above a specific value, they can buy a \"yes\" contract. Conversely, if they think the event will not happen, they can purchase a \"no\" contract. Contract purchase prices range from $0.02 and $0.99. The value of these contracts will continue to fluctuate based on market participants’ evolving judgment of probabilities, directly reflecting the collective market view of the likelihood of the event. Upon the event's resolution (e.g., when the US Bureau of Labor Statistics announces the CPI), the contract settles at a predefined value — $1 for a correct answer and $0 for an incorrect one.\n\n\nForecastEx contracts for the following indicators will be immediately available:\n\n\nEconomic\n\n\n\nUS Fed Funds Target Rate\n\n\n\nUS Consumer Sentiment\n\n\n\nUS Housing Starts\n\n\n\nUS Retail Sales\n\n\n\nUS Building Permits\n\n\n\nUS Consumer Price Index\n\n\n\nUS Payroll Employment\n...