Interactive Brokers this week consolidated contracts from Kalshi, CME Group and ForecastEx into a single trading platform for retail and institutional clients. Meanwhile, the SEC has slowed a wave of ETFs in the prediction market, while the Commodity Futures Trading Commission (CFTC) has relaxed reporting requirements for operators.
Here’s what matters this week.
Interactive Brokers is introducing prediction markets to their trading suite
On May 14, Interactive Brokers has launched a prediction markets platform Combining contracts from Kalshi, CME Group and its ForecastEx exchange.
The system allows retail and institutional clients to trade contracts linked to economic, climate and political events from a single interface, with prices across venues displayed side by side.
Kalshi x Interactive Brokers
One of the largest brokers in the world.
Casual, sophisticated and institutional investors can now trade futures.
All in one place. pic.twitter.com/yM2S4mksU9
-Kalshi (@Kalshi) May 14, 2026
The move pushes prediction markets deeper into traditional brokerage infrastructure. Rather than operating as standalone platforms, event contracts are increasingly integrated alongside existing trading products and execution systems.
Interactive Brokers Sports and entertainment contracts are not part of the IPO, he said.
Kalshi extends its lead as Polymarket trading volume declines
Trading activity at Polymarket declined in April for the first time in eight months everything It continued to gain ground in the American market.
According to Dune Analytics data compiled by @datadashboards, Polymarket’s monthly theoretical volume fell by about 9% to $10.3 billion. During the same period, Kalshi’s trading volume increased by 13% to reach $14.8 billion.
Polymarket attributed the slowdown to a major infrastructure overhaul implemented at the end of April after months of trading delays, failed transactions, and postponed product releases. The platform also introduced trading fees in most markets in late March, a change that may have contributed to the decline in activity.
Company spokesman He told Bloomberg The upgrade aims to improve execution speed and reliability. “Over the coming weeks, we will be shipping a series of updates that will make trading faster and smoother than ever before – reducing lag and delivering the biggest speed improvement in Polymarket’s history,” the spokesperson said.
Meanwhile, Calci’s corporate expansion continues to accelerate following its $1 billion funding round earlier this month.
The CFTC is working to ease reporting requirements for prediction markets
On May 13, That’s enough for you Issued a no-action letter for mitigation Prediction market Operators have certain swap data reporting requirements associated with fully collateralized event contracts. Previously, companies had to seek this relief individually. The new message creates a single frame that other operators can join.
This change reduces compliance costs for prediction market platforms and gives the industry a more uniform regulatory setup while broader rulemaking is still developing.
SEC slows down ETFs in prediction market
The Securities and Exchange Commission delayed the launch of 24 prediction market ETFs this week, pausing products offered by Roundhill Investments, Bitwise and GraniteShares. These funds would have given retail investors exposure to futures events tied to elections, economic data and other real-world outcomes through a standard ETF structure.
Under SEC rules, filings were approaching automatic approval deadlines before the agency intervened. ETF analysts said the delay was likely procedural rather than a denial, comparing it to the early regulatory path for bitcoin ETFs.
But the SEC’s hesitation reflects broader concerns about market manipulation, insider trading, and whether prediction market infrastructure is mature enough for mainstream investment products. The delay is important because prediction markets are already moving toward institutional finance.
Quote of the week
Mike Selig, Chairman of the Commodity Futures Trading Commission (CFTC).
On May 12, CFTC Chairman Michael Selig gave a rare interview with Axios in which he drew a direct line between prediction markets and derivatives — and away from sports betting. Selig is the only current member of the normally five-member panel, who is appointed by Trump, and his classification of these products as financial instruments carries direct regulatory weight.
“They represent different frameworks. Standard sports betting and casinos provide entertainment and have a lot of power to disqualify winners. In derivative markets, this is not allowed. If you keep winning? Great. You keep your winnings. What we are seeing is a distinction between markets and entertainment.”
Bottom line
This week showed that prediction markets are approaching the structure of traditional financial markets. Interactive Brokers has integrated event contracts into its brokerage infrastructure.
The CFTC has reduced reporting friction for operators. ETF issuers are one step closer to bringing prediction markets to retail investment accounts, even as the Securities and Exchange Commission slows the process for additional review. Meanwhile, the debate about what these products actually are remains unresolved.
Industry participants continue to frame prediction markets as financial derivatives linked to hedging and price discovery. Critics still view them as gambling products operating under a financial label. Infrastructure moves faster than the taxonomy debate around it.
Interactive Brokers this week consolidated contracts from Kalshi, CME Group and ForecastEx into a single trading platform for retail and institutional clients. Meanwhile, the SEC has slowed a wave of ETFs in the prediction market, while the Commodity Futures Trading Commission (CFTC) has relaxed reporting requirements for operators.
Here’s what matters this week.
Interactive Brokers is introducing prediction markets to their trading suite
On May 14, Interactive Brokers has launched a prediction markets platform Combining contracts from Kalshi, CME Group and its ForecastEx exchange.
The system allows retail and institutional clients to trade contracts linked to economic, climate and political events from a single interface, with prices across venues displayed side by side.
Kalshi x Interactive Brokers
One of the largest brokers in the world.
Casual, sophisticated and institutional investors can now trade futures.
All in one place. pic.twitter.com/yM2S4mksU9
-Kalshi (@Kalshi) May 14, 2026
The move pushes prediction markets deeper into traditional brokerage infrastructure. Rather than operating as standalone platforms, event contracts are increasingly integrated alongside existing trading products and execution systems.
Interactive Brokers Sports and entertainment contracts are not part of the IPO, he said.
Kalshi extends its lead as Polymarket trading volume declines
Trading activity at Polymarket declined in April for the first time in eight months everything It continued to gain ground in the American market.
According to Dune Analytics data compiled by @datadashboards, Polymarket’s monthly theoretical volume fell by about 9% to $10.3 billion. During the same period, Kalshi’s trading volume increased by 13% to reach $14.8 billion.
Polymarket attributed the slowdown to a major infrastructure overhaul implemented at the end of April after months of trading delays, failed transactions, and postponed product releases. The platform also introduced trading fees in most markets in late March, a change that may have contributed to the decline in activity.
Company spokesman He told Bloomberg The upgrade aims to improve execution speed and reliability. “Over the coming weeks, we will be shipping a series of updates that will make trading faster and smoother than ever before – reducing lag and delivering the biggest speed improvement in Polymarket’s history,” the spokesperson said.
Meanwhile, Calci’s corporate expansion continues to accelerate following its $1 billion funding round earlier this month.
The CFTC is working to ease reporting requirements for prediction markets
On May 13, That’s enough for you Issued a no-action letter for mitigation Prediction market Operators have certain swap data reporting requirements associated with fully collateralized event contracts. Previously, companies had to seek this relief individually. The new message creates a single frame that other operators can join.
This change reduces compliance costs for prediction market platforms and gives the industry a more uniform regulatory setup while broader rulemaking is still developing.
SEC slows down ETFs in prediction market
The Securities and Exchange Commission delayed the launch of 24 prediction market ETFs this week, pausing products offered by Roundhill Investments, Bitwise and GraniteShares. These funds would have given retail investors exposure to futures events tied to elections, economic data and other real-world outcomes through a standard ETF structure.
Under SEC rules, filings were approaching automatic approval deadlines before the agency intervened. ETF analysts said the delay was likely procedural rather than a denial, comparing it to the early regulatory path for bitcoin ETFs.
But the SEC’s hesitation reflects broader concerns about market manipulation, insider trading, and whether prediction market infrastructure is mature enough for mainstream investment products. The delay is important because prediction markets are already moving toward institutional finance.
Quote of the week
Mike Selig, Chairman of the Commodity Futures Trading Commission (CFTC).
On May 12, CFTC Chairman Michael Selig gave a rare interview with Axios in which he drew a direct line between prediction markets and derivatives — and away from sports betting. Selig is the only current member of the normally five-member panel, who is appointed by Trump, and his classification of these products as financial instruments carries direct regulatory weight.
“They represent different frameworks. Standard sports betting and casinos provide entertainment and have a lot of power to disqualify winners. In derivative markets, this is not allowed. If you keep winning? Great. You keep your winnings. What we are seeing is a distinction between markets and entertainment.”
Bottom line
This week showed that prediction markets are approaching the structure of traditional financial markets. Interactive Brokers has integrated event contracts into its brokerage infrastructure.
The CFTC has reduced reporting friction for operators. ETF issuers are one step closer to bringing prediction markets to retail investment accounts, even as the Securities and Exchange Commission slows the process for additional review. Meanwhile, the debate about what these products actually are remains unresolved.
Industry participants continue to frame prediction markets as financial derivatives linked to hedging and price discovery. Critics still view them as gambling products operating under a financial label. Infrastructure moves faster than the taxonomy debate around it.
