FIS Launches New Cleared Derivatives Solution for Prediction Markets

Key Terms

cleared derivatives financial

Cleared derivatives are standardized financial contracts—like futures or swaps—that are processed through a neutral central clearinghouse which stands between the buyer and seller. Think of it as a trusted referee that guarantees both sides honor the deal, reduces the risk of one party defaulting, requires collateral and rules for handling losses, and increases transparency and liquidity; that matters to investors because it lowers counterparty risk and can affect costs and market stability.

prediction markets financial

Prediction markets are exchanges where people buy and sell contracts that pay out based on the outcome of a future event, effectively turning collective beliefs into a price that reflects the market’s estimated probability. Like a sports betting line or a crowd-sourced weather forecast, they aggregate diverse information and sentiment into a single, continuously updated signal that investors can use to gauge market expectations, inform timing, assess risk, or construct hedges.

post-trade clearing financial

Post-trade clearing is the process that happens after a buy or sell order is executed to confirm the details, calculate what each side owes, and arrange for the actual exchange of cash and securities. Think of it like a neutral accountant or escrow service that double-checks the bill, guarantees each party’s obligations, and reduces the risk that one side won’t deliver — important to investors because it helps prevent losses from failed settlements and keeps markets running smoothly.

cloud-native technical

Cloud-native describes a way of creating and running applications that are designed specifically to operate smoothly on cloud computing platforms. Think of it as building a house with flexible, lightweight materials that can be easily moved, scaled, or adjusted as needed, rather than using rigid, traditional construction. For investors, it signifies technology that is more adaptable, efficient, and capable of quickly responding to changing market demands.

derivatives financial

Derivatives are financial contracts whose value depends on the price or performance of another asset, such as a stock, bond, commodity, currency or interest rate. Investors use them to hedge against risk, to speculate on future price moves, or to gain exposure without owning the asset — like buying insurance or placing a leveraged bet — so they can both protect portfolios and magnify gains or losses, affecting risk and market liquidity.

fcm financial

An FCM (Futures Commission Merchant) is a regulated firm that executes, clears and holds margin for futures and options trades on behalf of clients. Think of it as a broker plus bank for derivatives: it processes orders, safeguards collateral and connects traders to exchanges and clearinghouses. Investors should note an FCM’s financial stability, fees and operational reliability because those factors affect trade costs, access and counterparty risk.

Key facts

• FIS has launched FIS CD Prediction Clearing to provide advanced post-trade clearing for regulated prediction markets.
• Solution provides 24/7 technology and operations to accelerate market adoption.
• FIS CD Prediction Clearing is fully integrated into the FIS Cleared Derivatives suite.

JACKSONVILLE, Fla.--(BUSINESS WIRE)-- Global financial technology leader FIS^® today announced the launch of its new FIS CD Prediction Clearing solution to provide 24/7 post-trade clearing for regulated prediction markets.

The growth of prediction markets is continuing at pace, with a new report estimating a five-fold growth by 2030. Andy Ross, Head of Institutional at Kalshi said: "We are at an inflection point for prediction markets. The appetite from both retail and institutional participants is unlike anything we've seen before. To sustain that momentum, the infrastructure underpinning these markets needs to keep pace, and having the right post-trade foundation in place is critical to unlocking the next wave of participation." FIS CD Prediction Clearing helps provide the infrastructure to sustain this momentum by replacing fragmented, batch-processes with real-time clearing, high-volume transaction processing and 24/7 support.

“Prediction markets are demanding real-time clearing, high-volume transaction processing and round-the-clock availability, all of which are capabilities that legacy systems were never designed to deliver at scale,” said Andrés Choussy, Head of Capital Markets at FIS. “To address these challenges, FIS CD Prediction Clearing gives existing and new FCMs entering these markets the technology to handle millions of transactions a day with real-time risk updates. At FIS, we’re leveraging over 30 years of cleared derivatives expertise to bridge that gap between these fast-moving regulated new markets and the financial infrastructure they require, allowing our clients to compete with confidence."

FIS CD Prediction Clearing builds on the foundation of the FIS CD Books and Records Manager, which provides advanced post-trade clearing for derivatives. The enhanced solution replaces fragmented, batch-based processes with real-time processing and its cloud-native architecture supports middle and back-office functions, scales with volume and reduces infrastructure costs. This marks a meaningful step forward in modernizing post-trade operations for the global derivatives market.

This solution is part of the broader FIS Cleared Derivatives Suite, learn more at Unified Post-Trade Derivatives Processing Platform.

About FIS

FIS is a financial technology company providing solutions to financial institutions, businesses, and developers. We unlock financial technology to the world across the money lifecycle underpinning the world’s financial system. Our people are dedicated to advancing the way the world pays, banks and invests, by helping our clients to confidently run, grow, and protect their businesses. Our expertise comes from decades of experience helping financial institutions and businesses of all sizes adapt to meet the needs of their customers by harnessing where reliability meets innovation in financial technology. Headquartered in Jacksonville, Florida, FIS is a member of the Fortune 500® and the Standard & Poor’s 500® Index. To learn more, visit FISglobal.com. Follow FIS on LinkedIn, Facebook and X.

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For More Information
Melanie Hesketh
Global Head of PR
FIS Global Marketing and Communications
melanie.hesketh@fisglobal.com

Source: Fidelity National Information Services