Cantor Fitzgerald launches institutional prediction market trading
The investment bank will facilitate institutional-size block trades on Kalshi and work with Susquehanna Predictions to provide pricing and liquidity.
US.- Cantor Fitzgerald & Co. has launched institutional trading for prediction markets, giving clients access to block trading in event contracts on Kalshi. The investment bank will act as an introducing broker, arranging and facilitating institutional-size trades outside Kalshi’s central order book.
Cantor will work with Susquehanna Predictions, part of Susquehanna International Group, to provide institutional-scale pricing and liquidity. .
Pascal Bandelier, co-CEO and Global Head of Equities at Cantor, said the launch will give institutional investors greater access to prediction markets. He said the bank believes the sector is growing rapidly but that institutional participation has been limited by the lack of mechanisms to transact at scale on regulated exchanges.
The launch comes as financial firms increasingly explore event contracts for hedging and risk management. Kalshi Vice President of Business Development Max Crowley said Cantor’s institutional relationships and experience could help expand the use of event contracts and identify new portfolio applications. Cantor has plans to add other platforms.
Susquehanna Predictions Head of Business Development Joe Grubb said institutional risk transfer could become a major growth area for prediction markets. “We can price and execute custom, tailored contracts for institutional counterparties desiring to hedge both general market and bespoke industry risk currently unserved by traditional insurance markets,” Grubb added. “Our ability to do so quickly and at scale will provide a valuable solution to this unmet market demand.”
