Plus500 shares rose on the open after it announced plans to enter the surging US prediction markets space.
The platform, which specialises in contracts for difference, said it would launch its offering with start-up betting firm Kalshi.
Prediction markets allow customers to trade on the outcome of real-world events, with platforms like Polymarket taking the US by storm.
Customers place billions of dollars in ‘yes and no’ bets every week on the online exchanges, which offer hundreds of bets on an array of topics.
Even President Trump has launched his own prediction exchange Truth Predict.
Trump has launched his own prediction exchange Truth Predict
Plus500 said its customers in the US can now access a ‘broad range of regulated prediction markets covering economic indicators, financial events, geopolitical developments and other measurable real-world outcomes.’
It did not announce any financial details regarding the deal with Kalshi.
Plus500 first announced its expansion into predictions markets in December, following its appointment as the clearing partner for ‘FanDuel Prediction Markets’.
The CME Group-backed platform allows customers to trade event contracts on global benchmarks, including the S&P 500.
Shares in Plus500 jumped by nearly 8 per cent, leading the FTSE 250 risers.
Jefferies analysts said the deal ‘highlighted the potential for further opportunities with other partners for its clearing and risk-management expertise. This is further incremental good news not yet included in forecasts.’
The platforms have come under increased scrutiny amid concerns of insider trading, after one trader won $400,000 after Nicholas Maduro was ousted.
Last month, Plus500 said it had beaten revenue and profit expectations despite a drop in new customers.
It said it had delivered approximately $792million (£587m) in revenue, while Ebitda was up 8 per cent to $348million (£258m).
The group also handed $380million (£283million) back to shareholders over the course of the year, including $200million (£148million) allocated to share buyback programmes.
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