Financial services industry outlook

The U.S. initial public offering market stands at a critical inflection point where regulatory changes, intensifying private credit scrutiny and private equity exit pressures are all converging. Together, these forces have the potential to change the payoff matrix for issuers: Recent policy eases the cost of going public, oversight raises the cost of private markets, and sponsors need exits. This should result in sustainable, long-term appeal of the IPO market, even if short-term volatility introduces setbacks along the way.

In 2025, retail investor engagement through innovative products continues to be an area of focus for financial services organizations. In particular, event contracts—once prohibited instruments in the United States—are gaining popularity in the U.S. after being permissible for years in the United Kingdom, where they are regulated as financial derivatives.

Event contracts are binary contracts enabling investors to speculate on the outcome of specific occurrences such as political elections, sporting events or changes in key economic indicators like year-over-year inflation rates. These contracts typically have short-term, defined expiration dates and allow investors to speculate on, for example, whether their favorite sports team will win their next game.