Robinhood (NASDAQ: HOOD) is reportedly introducing a futures and derivatives exchange and clearinghouse, deepening our investment in Prediction Markets and better positioning us to deliver various products to our customers.
JB Mackenzie, VP and General Manager of Futures and International at Robinhood said that they are now “seeing strong customer demand for prediction markets, and we’re excited to build on that momentum,”
They added that their investment in infrastructure will position them “to deliver a better experience and more innovative products for customers.”
The independent exchange will be managed by a JV with Robinhood Markets, Inc. serving as the “controlling partner and providing strong retail demand and distribution.”
Market making firm Susquehanna International Group has been brought on as a key partner and day-one liquidity provider, “with other liquidity providers to be added to ensure the best possible execution for customers.”
The venture will accelerate delivery of its services by “acquiring 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. (MIAX) (NYSE: MIAX).”
MIAX will remain invested through a “strategic 10% equity stake in the exchange.”
Prediction Markets have now reportedly become one of Robinhood’s fastest-growing product line by revenue.
Just one year since launch, 9 billion contracts “have been traded by more than 1 million Robinhood customers.”
By introducing an institutional-grade exchange to the market, they’ll add more choices for consumers.
They’ll also gain the flexibility to build “faster and deliver more contracts and services to traders.”
The exchange will serve Robinhood Derivatives and other FCMs, and is expected “to begin operations in 2026.”
As covered, Robinhood Markets, Inc. transformed financial services by introducing “commission-free stock trading and democratizing access to the markets for investors.”
Currently, Robinhood, via its subsidiaries, lets clients trade stocks, options, futures (which includes event contracts), and crypto, “invest for retirement, earn with Robinhood Gold, and access a managed portfolio with Robinhood Strategies.”
Headquartered in Menlo Park, California, Robinhood claims that it focuses on putting their customers in the driver’s seat, with the stated aim of delivering value and products intentionally designed for a so-called “new generation of investors.”