MEMX, a technology-driven exchange operator founded by members to benefit all investors, announced that it has filed a proposed rule change with the U.S. Securities and Exchange Commission (“SEC”) that would permit MEMX Options to list Equities Based Exchange Prediction Contracts, (“EPCs”).
MEMX’s EPCs are event contracts on publicly traded companies designed to provide investors with targeted exposure to objective, quantifiable measures of a company’s financial performance, including earnings, revenue, sales and other key issuer-specific metrics.
Investors would be able to trade complementary YES and NO contracts with prices ranging from $0.01 to $0.99. The proposed contracts would trade on MEMX Options, a registered national securities exchange, and would benefit from central clearing, know-your-customer requirements and MEMX’s existing regulatory and market-surveillance programs.
“MEMX designed EPCs to allow investors to express a view on a single financial result,” said MEMX CEO Jonathan Kellner. “These event contracts make that exposure more direct and intuitive. An investor could buy an EPC on a widely followed KPI reported in a listed company’s 10K, such as top line product sales, and the contract price would provide a transparent indication of the market’s view of that outcome.”
“Prediction markets give investors a simple and direct way to take positions on important real-world and market events, and we are pleased to support MEMX’s proposal to offer event contracts on performance indicators for public companies,” said Milan Galik, Chief Executive Officer at Interactive Brokers. “We look forward to offering these products when they are available and giving our clients another way to manage risk around company announcements or express a view on individual stocks.”
EPCs allow investors with opposing views to come together in a single pool of liquidity and trade directly against one another without unnecessary intermediation.
Subject to SEC approval and operational readiness, MEMX is targeting an early 2027 launch for EPCs and expects the contracts to be available to investors through Interactive Brokers and other distribution partners.
Source: MEMX





