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HOOD Partners With Susquehanna to Expand Prediction Market Business
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Key Takeaways
HOOD is acquiring 90% of MIAX Derivatives to build its own futures and derivatives exchange.
The move supports fast-growing prediction-market revenues, which have topped $100M annually.
Bringing exchange and clearing in-house aims to boost economics, flexibility and product innovation.
Robinhood Markets (HOOD - Free Report) is turning the prediction market boom into a structural growth engine. In partnership with Susquehanna International Group, the company is acquiring a 90% stake in MIAX Derivatives Exchange (a regulated derivatives exchange). Financial terms of the transaction haven’t been revealed.
MIAX Derivatives Exchange is a wholly owned subsidiary of Miami International Holdings, Inc. (MIAX - Free Report) and a CFTC-licensed Designated Contract Market and Derivatives Clearing Organization. Under the terms of the deal, Miami International Holdings retains a 10% stake, giving the new entity regulatory credibility and a robust institutional-grade infrastructure.
Through this, HOOD plans to launch a dedicated futures and derivatives exchange and clearinghouse by 2026. The move allows the company to expand its contract offerings and manage clearing and execution internally, positioning prediction markets as a long-term core business.
Prediction Markets Turning Into a Growth Pillar for HOOD
Robinhood’s prediction markets have become its fastest-growing product line by revenue since its launch in March 2024 through its partnership with Kalshi, with roughly 9 billion contracts traded by more than 1 million customers in the first year. Prediction markets have become the company’s fastest-growing revenue line, exceeding $100 million in annualized revenues, with management anticipating a possible $300 million run rate over time.
Management has highlighted “strong customer demand,” framing event contracts as a way to deepen engagement, smooth trading cyclicality and add a differentiated fee stream alongside equities, options, crypto and futures.
To solidify this momentum, Robinhood, in collaboration with Susquehanna, is creating an independent futures and derivatives exchange and clearinghouse focused on prediction markets, where it will be the controlling partner and primary retail distributor.
Bringing exchange and clearing in-house should improve economics versus third???party venues, increase product flexibility and let Robinhood iterate faster on new political, macro and sports markets — the key levers to sustain prediction-market revenue growth well beyond the initial launch phase.
Robinhood Faces Tough Competition in Prediction Markets
Robinhood is not the only firm targeting the fast-growing prediction-market category. Kalshi remains one of the most notable players, drawing significant investor attention as it expands regulated event-contract offerings. In this space, Robinhood originally partnered with the platform before pursuing its own exchange ambitions.
Traditional derivatives-market veterans like Cboe Global Markets (CBOE - Free Report) and CME Group (CME - Free Report) and major financial institutions are exploring similar opportunities, aiming to introduce institutional-grade infrastructure and capture a share of rising retail demand.
Cboe Global is entering prediction markets with plans to launch event-based contracts tied to economic data and financial outcomes, positioning itself beyond traditional exchange offerings and toward next-generation speculative products. On the other hand, CME Group is taking a more consumer-focused route by partnering with FanDuel to launch “FanDuel Predicts” in December 2025. The platform will allow users to trade event contracts on sports results and key benchmarks such as the S&P 500, oil, gold, crypto and major economic indicators.
This broadening participation signals that prediction markets are no longer niche. They are rapidly transitioning into a mainstream asset class with growing competition, deeper liquidity and accelerating innovation across the financial landscape.
Our Take on Robinhood’s Prediction Market Business
Prediction markets will be a major growth engine for Robinhood, driven by strong appeal among younger traders, rising trust from a forthcoming regulated exchange and expanded revenue diversification beyond payment-for-order-flow, crypto and options. The company is building a regulated, scalable business arm, which will likely support more predictable and sustainable growth.
Shares of Robinhood have soared 210.2% this year, massively outperforming the industry’s rally of 26.2%.
Image: Bigstock
HOOD Partners With Susquehanna to Expand Prediction Market Business
Key Takeaways
Robinhood Markets (HOOD - Free Report) is turning the prediction market boom into a structural growth engine. In partnership with Susquehanna International Group, the company is acquiring a 90% stake in MIAX Derivatives Exchange (a regulated derivatives exchange). Financial terms of the transaction haven’t been revealed.
MIAX Derivatives Exchange is a wholly owned subsidiary of Miami International Holdings, Inc. (MIAX - Free Report) and a CFTC-licensed Designated Contract Market and Derivatives Clearing Organization. Under the terms of the deal, Miami International Holdings retains a 10% stake, giving the new entity regulatory credibility and a robust institutional-grade infrastructure.
Through this, HOOD plans to launch a dedicated futures and derivatives exchange and clearinghouse by 2026. The move allows the company to expand its contract offerings and manage clearing and execution internally, positioning prediction markets as a long-term core business.
Prediction Markets Turning Into a Growth Pillar for HOOD
Robinhood’s prediction markets have become its fastest-growing product line by revenue since its launch in March 2024 through its partnership with Kalshi, with roughly 9 billion contracts traded by more than 1 million customers in the first year. Prediction markets have become the company’s fastest-growing revenue line, exceeding $100 million in annualized revenues, with management anticipating a possible $300 million run rate over time.
Management has highlighted “strong customer demand,” framing event contracts as a way to deepen engagement, smooth trading cyclicality and add a differentiated fee stream alongside equities, options, crypto and futures.
To solidify this momentum, Robinhood, in collaboration with Susquehanna, is creating an independent futures and derivatives exchange and clearinghouse focused on prediction markets, where it will be the controlling partner and primary retail distributor.
Bringing exchange and clearing in-house should improve economics versus third???party venues, increase product flexibility and let Robinhood iterate faster on new political, macro and sports markets — the key levers to sustain prediction-market revenue growth well beyond the initial launch phase.
Robinhood Faces Tough Competition in Prediction Markets
Robinhood is not the only firm targeting the fast-growing prediction-market category. Kalshi remains one of the most notable players, drawing significant investor attention as it expands regulated event-contract offerings. In this space, Robinhood originally partnered with the platform before pursuing its own exchange ambitions.
Traditional derivatives-market veterans like Cboe Global Markets (CBOE - Free Report) and CME Group (CME - Free Report) and major financial institutions are exploring similar opportunities, aiming to introduce institutional-grade infrastructure and capture a share of rising retail demand.
Cboe Global is entering prediction markets with plans to launch event-based contracts tied to economic data and financial outcomes, positioning itself beyond traditional exchange offerings and toward next-generation speculative products. On the other hand, CME Group is taking a more consumer-focused route by partnering with FanDuel to launch “FanDuel Predicts” in December 2025. The platform will allow users to trade event contracts on sports results and key benchmarks such as the S&P 500, oil, gold, crypto and major economic indicators.
This broadening participation signals that prediction markets are no longer niche. They are rapidly transitioning into a mainstream asset class with growing competition, deeper liquidity and accelerating innovation across the financial landscape.
Our Take on Robinhood’s Prediction Market Business
Prediction markets will be a major growth engine for Robinhood, driven by strong appeal among younger traders, rising trust from a forthcoming regulated exchange and expanded revenue diversification beyond payment-for-order-flow, crypto and options. The company is building a regulated, scalable business arm, which will likely support more predictable and sustainable growth.
Shares of Robinhood have soared 210.2% this year, massively outperforming the industry’s rally of 26.2%.
Image Source: Zacks Investment Research
At present, HOOD sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.