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Robinhood Markets, Inc. is expanding its footprint in the rapidly growing prediction markets sector through a significant joint venture with Susquehanna International Group. This strategic partnership aims to establish a new, independent exchange and clearinghouse, enhancing Robinhood's offerings in futures and derivatives, including event contracts tied to sports and elections.
Key Takeaways
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Robinhood and Susquehanna International Group are forming a joint venture to launch a new futures and derivatives exchange.
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The venture will acquire MIAXdx, a CFTC-licensed exchange and clearinghouse, to accelerate its operations.
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Prediction markets have become Robinhood's fastest-growing revenue product, with over 1 million customers trading 9 billion contracts since launch.
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The new exchange is expected to begin operations in 2026 and will serve Robinhood Derivatives and other Futures Commission Merchants (FCMs).
A New Exchange for Prediction Markets
Robinhood is deepening its commitment to prediction markets by launching a new futures and derivatives exchange and clearinghouse. This initiative is driven by strong customer demand, with prediction markets already identified as Robinhood's fastest-growing product line by revenue. In just one year, the platform has seen over 1 million customers trade 9 billion contracts.
Strategic Partnership and Acquisition
The independent joint venture will be controlled by Robinhood, leveraging its substantial retail demand and distribution capabilities. Susquehanna International Group, a prominent market maker, is joining as a key partner and initial liquidity provider. To expedite the launch and operational readiness, the venture will acquire MIAXdx, a subsidiary of Miami International Holdings, Inc. MIAXdx holds CFTC licenses as a Designated Contract Market (DCM), Derivatives Clearing Organization (DCO), and Swap Execution Facility (SEF). Miami International Holdings will retain a 10% equity stake in the new exchange.
Future Outlook
This new institutional-grade exchange is designed to offer greater choice and flexibility for consumers, enabling faster delivery of more contracts and services. The exchange is slated to commence operations in 2026 and will cater to Robinhood Derivatives as well as other FCM platforms. This move signifies Robinhood's intent to further innovate and solidify its position in the evolving financial landscape.
Sources
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Robinhood, Susquehanna to Launch Exchange to Expand Prediction Markets Offerings, The Wall Street Journal.
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