Interactive Brokers announced on Tuesday that it would extend its prediction markets’ trading hours to 24 hours per day from Sunday to Friday.
“Today’s markets react instantly to events happening across geographies and time zones,” said Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers. “By extending trading hours for Forecast Contracts, we’re offering clients the flexibility to act on critical market developments as they unfold, regardless of when they happen.”
Interactive Brokers offers prediction markets through a subsidiary, ForecastEx. The platform focuses on government, climate, and key economic indicators.
The 24/6 trading schedule is part of the Commodity Futures Trading Commission’s (CFTC) reconsideration of trading hours in derivatives markets. On April 21, the CFTC announced a request for comment “to better inform them on the potential uses, benefits, and risks of trading on a 24/7 basis in the derivatives markets the CFTC regulates.”
Trading hours are the next prediction market expansion
Prediction markets‘ expansion into events like sports and elections has been controversial, but expanded trading hours would make them more accessible to more people.
Financial exchanges have trading hours as a bulwark against extreme volatility. Investors have time to absorb news that could impact the market before placing trades. However, markets on events that occur in real time are sold in part based on their rapid responsiveness to what happens in the real world.
As the CFTC decides how to balance market integrity, market stability, and consumer protection, prediction markets are likely to support longer trading hours.
Kalshi’s election notices about trading hours
Shortly after launching its 2024 presidential election contracts, CFTC-regulated prediction market platform Kalshi expanded its trading hours. The longer trading hours made it more convenient for customers to place trades on the election.
GM. Longer market hours start on Monday: 8AM-3AM ET
— Kalshi (@Kalshi) October 10, 2024
Election week: 24/7!!! pic.twitter.com/EPoouhl0uC
Expanding trading hours is a way to make prediction markets more accessible to retail customers. Ordinary people may be moved to place a wager at an odd hour of the day that doesn’t correspond with an institutional investor’s business hours.
As prediction markets become increasingly tailored to retail investors, features like trading hours and payment options will expand alongside markets for just about everything happening in the news.
