Cboe to Launch Prediction Markets Within Months But Avoid Sports

Cboe Global Markets Inc. is planning to launch its own prediction markets offering within months, but unlike some of its competitors it will avoid products related to sports for now.

The Chicago-based derivatives exchange operator is the latest exchange company to enter the nascent and booming prediction markets industry, which offers federally regulated event contracts that mimic traditional gambling products.

While other financial firms have partnered with existing prediction market startups or sports gambling companies, Cboe aims to launch its own products tied to financial outcomes and economic events, Chief Executive Officer Craig Donohue said in interviews with Bloomberg.

“It’s ...