News: Robinhood, Susquehanna Launching Own Prediction Market After M&A

Robinhood and Susquehanna International Group are working together to launch their own prediction market product after acquiring a majority stake in an exchange.

A press release from Tuesday evening (you can see the whole thing below) notes that the two companies acquired most of the equity in MIAX Derivatives Exchange. MIAXdx is both a designated contract market (DCM) and a derivatives clearing organization (DCO) under the Commodity Futures Trading Commission. DCMs like Kalshi and Crypto.com (and soon to be Polymarket) offer prediction markets in all 50 states.

More from the Wall Street Journal (paywall): “Robinhood Markets said it is launching a futures and derivatives exchange with market maker Susquehanna International Group to expand its array of prediction contracts tied to sports, elections and other events.”

Prediction markets had quickly become a big part of Robinhood’s business through its partnership with Kalshi, accounting for $100 million in annualized revenue at current run rates.

Much of Kalshi’s retail trading volume comes from Robinhood users; data from Robinhood’s Q3 earnings call means that it accounted for more than half of Kalshi’s volume for October. Kalshi also uses Susquehanna as a sizable provider of liquidity.

Here’s the press release:

Miami International Holdings, Inc. (MIAX^®) (NYSE: MIAX), a technology-driven leader in building and operating regulated financial markets across multiple asset classes, today announced it has entered into an agreement to sell 90% of the issued and outstanding equity in MIAX Derivatives Exchange (MIAXdx™), a wholly owned subsidiary of MIAX, to Robinhood Markets, Inc. (Robinhood) (NASDAQ: HOOD) in partnership with Susquehanna International Group. MIAX will retain the remaining 10% of the issued and outstanding equity of MIAXdx.

MIAXdx is a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO) with regulatory approval from the Commodity Futures Trading Commission (CFTC) to list and clear fully collateralized futures, options on futures and swaps.

“Through our retained equity stake, the transaction announced today will provide MIAX with access to the growing prediction markets on an expedited basis,” said Thomas P. Gallagher, Chairman and Chief Executive Officer of MIAX. “The transaction with Robinhood closely aligns with our strategy of partnering with industry leaders to offer innovative trading products to the market, and we’re excited about the opportunity to gain exposure to prediction markets through this initiative. The transaction represents a logical step forward for MIAX as we continue to focus on strategic growth opportunities within our core exchanges.”

“We’re excited to continue working with MIAX as investors in this exchange,” said JB Mackenzie, VP and GM of Futures and International at Robinhood. “MIAX is a market leading exchange operator and we look forward to exploring future partnership opportunities to deliver products that meet the needs of Robinhood’s customers.”

Mr. Gallagher added, “We have evaluated alternatives to facilitate our entry to the prediction markets, and we believe that today’s strategic alignment is the right lever for offering institutional and retail futures traders exposure in the growing prediction markets while providing MIAX with potential long-term value.”

The transaction is expected to close in the first quarter of 2026 and is subject to customary closing conditions and certain filings with the CFTC.