Robinhood Markets Inc. (NASDAQ:HOOD) and Susquehanna International Group announced on Tuesday that they will jointly acquire control of a regulated U.S. derivatives exchange, marking a major step in their strategy to expand further into the fast-growing prediction markets industry.
Under the deal, the two firms will take a combined 90% ownership stake in the MIAX Derivatives Exchange, part of Miami International Holdings Inc. (NYSE:MIAX). Miami International will retain the remaining 10%. MIAX was previously owned by the now-defunct crypto platform FTX before changing hands.
Robinhood said the move is intended to strengthen its position in prediction markets—platforms where users trade contracts tied to future events—by giving the company and Susquehanna the ability to directly list, clear, and manage such products through MIAX.
“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,” JB Mackenzie, VP and GM of Futures and International at Robinhood said in a statement.
Reports surfaced in October indicating that Robinhood had been preparing for a deeper push into the space. The firm already lists event contracts from prediction exchange Kalshi on its platform, while Susquehanna has previously said it acts as a market maker for Kalshi.
Prediction markets—where traders speculate on outcomes ranging from elections to sports to more unconventional topics like the wardrobe choices of global leaders—have become increasingly prominent on Wall Street. Interest has grown sharply following Kalshi’s rapid rise in the U.S. regulatory framework.
Kalshi, which initially focused on sports-related contracts, became one of the first exchanges approved by the Commodity Futures Trading Commission to list event-based financial contracts.
Robinhood said users traded 2.3 billion event contracts on its platform in the September quarter, more than double the volume seen in the previous quarter, highlighting accelerating retail demand. The company added that interest in these contracts continues to rise rapidly.
Robinhood’s progress toward launching its own independently listed event contracts also sets the stage for stiffer competition with Kalshi in the months ahead.