Devexperts has launched a new software system that lets CFD and exchanges build platforms for event-based trading, a market segment that's been picking up steam as U.S. regulators ease restrictions on prediction markets.

Until recently limited mainly to the cryptocurrency sector (and picked up last year by Robinhood) event contracts have become one of the most talked-about products in recent months.

The offering from Devexperts could prompt prop firms and the CFD industry to adopt them as well. The question is, however, whether this marks a return to binary options, which have been banned since 2018.

Industry Rushes to Meet Retail Interest

“Traders love prediction markets,” Devexperts says on its dedicated webpage promoting the new offering. And while betting on the release date of the next GTA or on whether aliens will land in the United States may seem far removed from investing, and closer to gaming or gambling, traders have indeed become enthusiastic about this market.

At Robinhood, investors already have 24/7 access to prediction markets. Coinbase is reportedly building its own service with Kalsu to compete with Polymarket, and even derivatives giant CME is moving into this hybrid gambling-investment space aimed at retail users.

Now, Devexperts is joining the race, targeting CFD brokers and prop-trading firms. The software developer says it can deliver either a complete event trading system or components that plug into a firm's existing infrastructure. Clients get a customizable interface, contract management tools, and a matching engine designed to handle the unique demands of event markets.

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“With our proprietary prototype we can deliver an event based trading platform, either in part for integration or as a full standalone product, in a timely and cost-effective manner that allows firms and exchanges to begin providing these services quickly and efficiently,” Jon Light, senior director of product management at Devexperts, said in a statement.

Event-based trading lets users bet on outcomes ranging from election results to sports matches. The model has attracted retail participation as regulatory barriers have come down, with several companies racing to capture market share.

What’s Inside?

Devexperts' system builds on technology from its DXtrade platform and DXmatch engine, products the company has developed over two decades in capital markets software. The new offering addresses technical challenges specific to event markets, including round-the-clock uptime requirements and the need to create and settle contracts quickly.

The platform handles contract creation and resolution without manual intervention, using API connections to speed up administrative tasks. Its modular design allows operators to update individual components without taking the whole system offline – a necessity when markets run 24 hours a day.

For certain event types, the system can introduce deliberate latency to prevent front-running. That's particularly relevant for live sporting events, where information advantages can distort markets.

The launch comes as multiple players eye the event trading space. Regulatory shifts in the U.S. have opened doors for prediction markets, creating opportunities for technology providers that can deliver compliant systems at scale.

The firm hasn't disclosed pricing or named any clients for the new offering.

Still Investing or Already Binary Options Gambling?

Looking objectively at how event contracts work, they bear a strong resemblance to binary options, making them a highly speculative product. If they gain real traction among CFD brokers, those firms will likely profit significantly. The question is what this would mean for clients.

Earlier this year, in an analysis of the market that Jack Such of Kalshi, responsible for business and media development, described as a future “trillion-dollar asset class,” FinanceMagnates.com asked whether this is still trading or already gambling.

Kalshi itself has confirmed that some event contracts “are structured as binary options,” a product category banned in Europe years ago due to gambling concerns. The company has been locked in a legal battle with the CFTC over political event contracts since 2023, though a district court ruled in Kalshi's favor last September.