Cantor Fitzgerald has opened institutional access to prediction market event contracts, marking a significant expansion of Wall Street’s involvement in CFTC-regulated betting markets. Announced August 19, the deal gives approximately 3,000 institutional clients including hedge funds and family offices the ability to trade Kalshi event contracts through Cantor’s Global Markets division acting as Introducing Broker.
The arrangement allows clients to hedge directly against specific events like iPhone sales figures or weather outcomes rather than inferring risk through traditional price-based instruments. Susquehanna Predictions will provide liquidity and pricing for block trades executed off Kalshi’s central order book. Clients can propose custom contracts addressing unique risks including AI supply-chain disruptions or computing costs.
This follows similar partnerships from Clear Street, Marex, and Talos, signaling accelerating institutional adoption of prediction markets as a hedging tool. Cantor plans to expand beyond Kalshi to additional trading venues over time.
FXnCO Insight
Institutional traders should monitor prediction market liquidity deepening as major brokers legitimize event contracts as genuine hedging instruments alongside traditional derivatives.
Source: Finance Magnates