ForecastEx, the new exchange focused on predictions markets for US economic indicators and global climate events, has successfully launched, utilising Connamara Technologies’ EP3 exchange and clearing platform.
The exchange allows trading on a range of US economic metrics, such as Unemployment Claims, Consumer Price Index, Retail Sales, Fed Funds rates, and Housing Starts. Additionally, global climate-related contracts include forecasts on temperatures and atmospheric CO2 levels.ForecastEx is underpinned by Connamara’s EP3 platform, which integrates key exchange functions into a unified system, offering market access, data distribution, order matching, execution, risk management, regulatory reporting, and settlement. Designed to meet the needs of evolving markets, including predictions, crypto, and tokenized real-world assets, EP3 is also adaptable to traditional trading markets like equities and derivatives.
“Our relationship with ForecastEx began when David Downey, their CEO, approached us about two years ago with the idea of building an exchange,” Jim Downs, Connamara’s Co-Founder & CEO tells TradingTech Insight. “I’ve known David from our days on the trading floor at the CBOE, so we go way back. However, David is very thorough – he didn’t just rely on our longstanding relationship. ForecastEx conducted a rigorous due diligence process to ensure we would be the right partner.”
Maureen Downs, Connamara’s Co-Founder and Chair, expands on some of the reasons why ForecastEx chose the company, and what sets Connamara’s offering apart. “First, we provide a fully integrated, end-to-end solution, covering everything from the matching engine and risk management to market surveillance, clearing and settlement. We believe having a seamless, integrated system is crucial for the market. Our platform is cloud-native, but we offer flexible deployment options—single cloud, multi-cloud, hybrid, colocation plus cloud, or even a fully on-premise physical setup. This is important because, in some jurisdictions, regulations still require a physical presence. Although regulators are becoming more comfortable with cloud and hybrid models, certain areas still mandate physical infrastructure. Our flexibility lets clients choose what best suits their needs.”
Another important point is cost accessibility, she says. “We’re seeing an explosion of new exchanges and innovators entering the market with fresh products—everything from digital assets and carbon credits to events and sports trading. For many of these innovators and emerging markets, cost has been a significant barrier. So, we designed a product that’s accessible and quick to market.”
Jim adds that clients are also drawn to Connmara because of their strong foundation in trading and markets. “Our experience in the markets has been invaluable over the years. We founded the business 25 years ago during the transition from floor trading to electronic markets and since then, we’ve built a team that deeply understands market dynamics. That gives us an edge over providers who purely come from a software background. We can speak the language of exchanges and innovators, helping them fine-tune their ideas and execution. These are the reasons people choose us.”
The growing trend of buy and build, where firms want to pick and choose components and build their own solutions around those via APIs, plays to Connamara’s strengths, says Jim. “That’s exactly how we designed EP3,” he says. “I always emphasise to our engineers that what we’re really offering is access to APIs. That’s why we call it an exchange platform rather than an exchange trading system, which implies a closed ecosystem. With EP3, I envisioned a platform that delivers core, standardised functionalities while offering customisable elements around the edges. By exposing our APIs thoughtfully, exchanges can add their unique ‘special sauce’ to differentiate themselves or extend the platform when launching new products, like ForecastEx did. Several of our clients are heavy API users, and from the beginning, we focused on thorough documentation and sample applications to help them integrate smoothly. For example, we offer a clearing and settlement API, knowing that operating a clearing house is a specialised business function that might be handled separately. Our API framework is well-documented, versatile, and includes multiple adapters for different needs. We also offer a range of pre-built integrations that clients can leverage, providing a lot of flexibility.”
The component-based structure lets clients manage costs efficiently, adds Maureen. “For example, a client might only need a matching engine or a limited set of components, allowing them to start small and scale as they grow. Some trading venues begin as non-regulated entities, then move toward regulation as they expand. This approach keeps initial costs low while allowing for growth as their needs evolve.”
ForecastEx, a subsidiary of Interactive Brokers Group, Inc., operates under licences from the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO).
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