Robinhood Steps Into Prediction Markets With Exchange Acquisition, HOOD Up 3%
Robinhood Markets Inc. (NASDAQ:HOOD) is acquiring a CFTC-regulated exchange to take control of prediction markets, which has spiked HOOD 3% in premarket trading.
Robinhood Expands Prediction-Market Push With Licensed Exchange
The company said it will introduce a futures and derivatives exchange and clearinghouse, deepening its investment in the prediction-market category.
The move comes through a joint venture in which Robinhood will act as the controlling partner.
Susquehanna International Group was named as a day-one liquidity provider, with additional liquidity firms expected to join.
Robinhood said demand for prediction markets has grown quickly, and the new infrastructure will help deliver faster product rollouts and improved execution for customers.
Deal Includes MIAXdx Acquisition And New Regulatory Pathway
To accelerate development, the venture will acquire MIAXdx, a CFTC-licensed Designated Contract Market (DCM), Derivatives Clearing Organization (DCO), and Swap Execution Facility (SEF), and wholly-owned subsidiary of Miami International Holdings Inc.
About The Author
