Cantor Fitzgerald has begun offering institutional trading in prediction markets, acting as an introducing broker for block trades in event contracts on CFTC-regulated exchange Kalshi.
Under the arrangement, Cantor will arrange and facilitate institutional-size block trades in event contracts for institutional clients, allowing them to negotiate trades at a single price through Kalshi’s block trading framework, away from the central order book.
Pascal Bandelier, co-chief executive and global head of equities at Cantor, said: “Prediction markets are growing rapidly, but institutional participation has not kept pace because investors have lacked the ability to transact at scale on a regulated exchange. The liquidity is here.
“With the launch of block trading, institutional investors can now access block trading in event contracts through an institutional intermediary they know and trust.”
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In addition, Cantor is also working with Susquehanna Predictions, which will provide pricing and liquidity for the business.
Joe Grubb, head of business development at Susquehanna Predictions, said: “We believe the next area of material growth for prediction markets will be large institutional risk transfer. We are able to 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.”
The move adds Cantor to a growing list of firms building institutional access around Kalshi.
Talos integrated with Kalshi in July to add algorithmic trading and a block trading interface for event contracts, and Tradeweb took a minority stake in the firm in February while incorporating its event-probability data into its own platform.
Earlier this month, TS Imagine also incorporated prediction markets data into its platform, letting institutional clients factor event probabilities into risk management and stress testing.