Odd Lots Terry Duffy on the CME's Big Push into Retail Trading
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Oct 2, 2025 Terry Duffy, Chairman and CEO of CME Group, dives into the exchange's shift to attract retail traders, highlighting a new partnership with FanDuel. He discusses cutting-edge technologies that level the playing field and the mechanics of shorter event contracts. Duffy emphasizes the importance of regulation and education for retail participants, while voicing concerns over political prediction markets. He also examines the competitive landscape, implications of a government shutdown on markets, and the blending of retail and institutional trading strategies.
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Technology Democratizes Trading
- Technology has leveled the playing field so retail traders can access tools once exclusive to institutions.
- CME responds by shrinking contracts (E-minis to micros/nanos) and exploring prediction markets to reach retail.
Structure Event Contracts With Clearing
- Use centralized clearing and multiple market makers to create trustworthy, liquid event markets.
- Incent market makers and allow them to hedge in core CME products to keep spreads tight.
Make Retail Contracts Simple And Regulated
- Retail-friendly event contracts will be binary and low-cost to lower barriers to entry.
- Education and clear rules matter because regulation brings credibility and protects participants.