MEMX files with SEC to launch prediction contracts tied to corporate earnings

MEMX, the exchange built by Wall Street to challenge Wall Street, just filed a proposed rule change with the SEC to offer prediction contracts tied to public company performance. The filing, submitted on August 11, positions the exchange to launch a product that lets traders place binary bets on corporate earnings, revenue, and other financial metrics. The products are called Equities Based Exchange Prediction Contracts, or EPCs. Each contract is priced between $0.01 and $0.99, functioning like a simple yes-or-no wager on whether a company hits a specific financial target. If you’re right, the contract settles at $1. If you’re wrong, it goes to zero. How EPCs actually work That $0.01 to $0.99 price range means the maximum risk on any single contract is less than a dollar. MEMX plans to make these contracts accessible through established brokerages, with Interactive Brokers among the initial distribution partners. The target launch window is early 2027, assuming the SEC gives its blessing. Taking aim at Kalshi and Polymarket MEMX is walking into a prediction market space that already has two prominent inhabitants. Kalshi, a CFTC-regulated exchange, has been offering event contracts ...