Post by : Badri Ariffin

Robinhood is embarking on a significant chapter in the trading arena with its new joint venture aimed at establishing a fully regulated futures and derivatives exchange. This venture, in partnership with Susquehanna International Group and through the acquisition of MIAXdx, a market operator licensed by the CFTC, will bolster its growing prediction market segment.

The planned exchange will function autonomously, catering to Futures Commission Merchant platforms, including Robinhood Derivatives. It is set to provide an array of futures, derivatives, and an expanded selection of prediction market contracts. While Robinhood remains the controlling entity, leveraging retail demand and distribution, Susquehanna will serve as a primary liquidity provider from day one. MIAX, the owner of MIAXdx, is poised to retain a 10% strategic interest post-acquisition.

Prediction markets have quickly emerged as a key revenue stream for Robinhood. Within a year, over a million users have engaged in trading more than 9 billion contracts. Transitioning to a structure that includes institutional-grade exchange and clearinghouse aims to provide more contract options, accelerate growth, and enhance execution quality for traders.

The joint venture anticipates launching operations in 2026, pending necessary regulatory approvals and the completion of the MIAXdx deal. Robinhood emphasizes that the new infrastructure will underpin its strategy to create a broader, more agile derivatives ecosystem.

#Business News