Cantor Launches Prediction Market Trading for Institutional Investors
Susquehanna International Group will provide pricing and liquidity as Cantor expands access to large, privately negotiated event-contract trades for clients.
- On Wednesday, Cantor Fitzgerald announced it will offer its roughly 3,000 institutional clients access to block trades on Kalshi, becoming one of the first full-service investment banks to facilitate activity on a CFTC-regulated prediction market exchange.
- Prediction markets are shifting from retail-focused platforms for sports and elections toward professional environments where Wall Street firms can trade and hedge risk, marking a significant evolution for the novel asset class.
- "The liquidity is here," said Pascal Bandelier, co-CEO and global head of equities at Cantor, noting institutional participation has lacked the ability to transact at scale; Cantor will act as broker while Susquehanna International Group provides pricing and liquidity.
- Kalshi spokesperson Elisabeth Diana said the firm can request new markets for clients, adding, "We will submit it to the CFTC and we have to make sure there is enough liquidity" as expansion continues.
- Annual trading volumes in prediction markets could reach $1 trillion by decade-end, according to Bernstein, as Joe Grubb, head of business development at Susquehanna Predictions, identified institutional risk transfer as the next area of material growth.
19 Articles
19 Articles
Cantor Fitzgerald Opens Institutional Block Trading in Kalshi Event Contracts
Cantor Fitzgerald said on Aug. 19 that it has begun arranging institutional block trades in event contracts, making it one of the first full-service investment banks to broker prediction-market trades at institutional size on a CFTC-regulated exchange. Prediction markets grew on retail flow, and their order books still show it. An institution that wants a position worth millions cannot work it through a thin central order book without pushing th…
Cantor launches prediction market trading for institutional investors
Aug 19 (Reuters) - Cantor Fitzgerald has launched prediction market trading for institutional investors, allowing clients to trade event contracts on regulated exchange Kalshi, the investment bank said on Wednesday. The move expands Cantor's institut...
Cantor opens Kalshi prediction markets to hedge funds
Cantor Fitzgerald is preparing to give its institutional clients, including hedge funds and family offices, access to Kalshi’s prediction markets as demand grows for event-based instruments that can be used for both trading and hedging, according to a report by the Wall Street Journal. The investment bank will act as a broker for clients seeking to trade large blocks of Kalshi’s yes-or-no contracts, which cover events ranging from weather and co…
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