- Robinhood’s new exchange targets faster execution and more contracts, strengthening its prediction markets for retail investors.
- MIAXdx acquisition provides CFTC approval, enabling Robinhood to serve both retail and institutional traders efficiently.
- Partnering with Susquehanna and FCMs ensures liquidity, boosting Robinhood’s competitive position in derivatives trading.
Robinhood is taking a bold step into the futures and derivatives space, aiming to transform prediction markets for retail investors. The company announced plans to launch an independent exchange and clearinghouse, leveraging its growing user base and strong market demand.
According to the announcement, the new platform will be operated through a joint venture, with Robinhood serving as the controlling partner. Susquehanna International Group joins as a day-one liquidity provider, and additional partners will enhance execution quality. By acquiring MIAXdx, a CFTC-licensed derivatives platform, Robinhood gains regulatory approval and operational readiness to serve both retail and institutional traders.
The company highlighted that prediction markets are its fastest-growing product line. JB Mackenzie, VP and General Manager of Futures and International at Robinhood, stated, “Our investment in infrastructure will position us to deliver an even better experience and more innovative products for customers.”
Robinhood reported that over one million customers have traded more than nine billion contracts in just one year. Consequently, the launch of a fully regulated exchange promises faster execution, broader contract offerings, and enhanced flexibility for users.
Strengthening Retail and Institutional Reach
Besides retail growth, Robinhood aims to attract other Futures Commission Merchants (FCMs) to its platform. The exchange will enable multiple participants to trade efficiently while maintaining regulatory compliance. Additionally, MIAX will retain a strategic 10% equity stake, ensuring continuity and expertise in derivatives operations.
The exchange is expected to begin operations in 2026, giving Robinhood sufficient time to integrate infrastructure and secure additional liquidity providers. Moreover, the venture strengthens Robinhood’s competitive positioning in the growing prediction market landscape.
Robinhood first partnered with Kalshi in March to integrate prediction markets covering U.S. politics, macroeconomic indicators, and sports. By August, the app rolled out NFL and NCAA-related markets.
Analysts at Bernstein noted, “Prediction markets are evolving beyond simple event betting into broader information trading venues.” Indeed, regulated platforms like Kalshi have outpaced competitors such as Polymarket in monthly volumes. In October, Kalshi recorded $4.4 billion in volume, compared with Polymarket’s $3.02 billion.
