FIS has introduced a new post-trade clearing solution for regulated prediction markets, aimed at moving the segment away from batch-based processing.
The platform, FIS CD Prediction Clearing, provides real-time clearing, continuous processing and 24/7 availability. It builds on the firm’s existing cleared derivatives infrastructure, including its CD Books and Records Manager, according to a press release on Business Wire.
Growing volumes
The launch comes as activity in prediction markets increases. A report referenced by FIS estimates the market could grow five-fold by 2030.
Andy Ross, head of Institutional at Kalshi, said: “We are at an inflection point for prediction markets… the infrastructure underpinning these markets needs to keep pace.”
FIS says the new system is designed to handle high transaction volumes and provide real-time risk updates, replacing what it describes as fragmented processes.
“Prediction markets are demanding real-time clearing… capabilities that legacy systems were never designed to deliver at scale,” said Andrés Choussy, head of Capital Markets at FIS.
Middle- and back-office functions
The solution is part of FIS’s cleared derivatives suite and is intended to support middle- and back-office functions through a cloud-based architecture.
According to the company, the aim is to align post-trade infrastructure with the operational requirements of newer regulated market segments.
