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(Bloomberg) — Exchange operator MEMX is looking to become the latest financial exchange to compete with prediction markets by offering binary bets on corporate earnings metrics, according to a representative for the company. 

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The exchange filed a proposed rule change with the Securities and Exchange Commission on Tuesday night, requesting permission to list the specialized option contracts. The bets will be tied to the financial performance of public companies, with separate contracts for earnings, revenue and other financial metrics.

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The move is the latest sign that options exchanges are trying to replicate the success that prediction market operators Kalshi and Polymarket have had in offering new binary financial contracts.  

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MEMX is the second US exchange operator to ask the SEC to let it list binary options on company earnings, following Cboe Global Markets Inc. The regulator has yet to approve Cboe’s proposed rulemaking on what the Chicago operator calls Key Performance Indicator options.

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A variety of tradable contracts will be offered for the top 25 US stocks by market capitalization, according to a MEMX representative. 

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The pricing of the MEMX contracts will mirror derivatives traded on Kalshi and Polymarket, with prices ranging from $0.01 to $0.99. Those reflect the percentage chance of an outcome occurring, such as Nvidia Corp.’s earnings being above a certain amount. 

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The exchange will list the products, which it calls Exchange Prediction Contracts, on its options exchange. There are subtle differences between Cboe and MEMX’s proposed binary options on corporate events, for example the price of MEMX contracts will not be allowed to exceed $1, unlike those Cboe put forward.  

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Interactive Brokers said it will support the new MEMX contracts. 

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“Prediction markets give investors a simple and direct way to take positions on important real-world and market events, and we are pleased to support MEMX’s proposal to offer event contracts on performance indicators for public companies,” Milan Galik, chief executive officer at Interactive Brokers, said in a statement.

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MEMX’s owners, including firms such as Charles Schwab, Citadel Securities and Jane Street, recently agreed to sell a majority stake in the business to TMX Group, Canada’s largest exchange operator, in a deal that merges the company with Box, a rival bourse. The newly combined business will be valued at $2.3 billion. The sale is expected to close in the second half of 2027.

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