Cantor Fitzgerald has launched prediction market trading for institutional investors, allowing clients to trade event contracts on regulated exchange Kalshi. This move expands Cantor's institutional trading model to prediction markets, which enable investors to trade contracts tied to the outcome of future events. According to Pascal Bandelier, Cantor's co-CEO and Global Head of Equities, 'the liquidity is here' for institutional participation in prediction markets.
Prediction Market Growth
Prediction markets are expected to grow rapidly, with Bernstein estimating they could reach $1 trillion in annual trading volumes by the end of the decade. Cantor will act as an introducing broker, negotiating institutional-size trades, while Susquehanna Predictions will provide pricing and liquidity for the trades.
Institutional Interest
Interest in prediction markets has surged, particularly during the 2024 U.S. presidential election, boosting retail engagement and trading activity. An increasing number of financial institutions are now seeking to gain exposure to event-driven trades, with Kalshi and other prediction market platforms making a push to attract top institutional investors and hedge funds.
