"Our focus is really on event and prediction contracts, which I do think have utility based on financial instruments... What we're doing is... offering people the opportunity to trade a very simplified contract that gives them the ability to get a payoff for being mostly right, but not exactly right." The prediction market is booming, but largely dominated by unregulated or loosely regulated platforms focusing on pop culture and sports. By launching SEC-regulated, financially-focused prediction contracts with nuanced payout structures, Cboe is creating a differentiated derivatives product. This allows them to capture institutional and high-tier retail flow that requires strict regulatory compliance, expanding their Total Addressable Market (TAM) in a highly profitable niche. LONG CBOE. They are successfully leveraging their dominance in cash index options to capture a new, compliant segment of the rapidly growing prediction market ecosystem. By ignoring the sports betting segment (90% of current market volume), the actual demand for purely financial prediction contracts may be too niche to drive significant revenue growth.