MIAX is set to offload a 90% stake in its derivatives exchange – MIAXdx – to Robinhood Markets, in partnership with Susquehanna International Group, following an agreement between the parties.
JB Mackenzie
Following close of the transaction, MIAX has confirmed that it will retain 10% of the issued and outstanding equity in the exchange and clearinghouse. Specifically, MIAXdx is a Designated Contract Market (DCM) and Derivatives Clearing Organisation (DCO) which is approved to list and clear fully collateralised futures, options on futures and swaps.
Thomas Gallagher, chair and chief executive of MIAX, said: “Through our retained equity stake, the transaction announced today will provide MIAX with access to the growing prediction markets on an expedited basis.
“The transaction with Robinhood closely aligns with our strategy of partnering with industry leaders to offer innovative trading products to the market, and we’re excited about the opportunity to gain exposure to prediction markets through this initiative. The transaction represents a logical step forward for MIAX as we continue to focus on strategic growth opportunities within our core exchanges […] We have evaluated alternatives to facilitate our entry to the prediction markets, and we believe that today’s strategic alignment is the right lever for offering institutional and retail futures traders exposure in the growing prediction markets while providing MIAX with potential long-term value.”
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In August 2024, MIAX announced a $100 million capital injection from Warburg Pincus, which at the time was set to partly contribute to the development of MIAXdx, as well as MIH’s agricultural and financial futures businesses on its US futures exchanges Minneapolis Grain Exchange (MGEX).
The transaction is expected to close in Q1 2026, subject to customary closing conditions, as well as the relevant filings with the Commodity Futures Trading Commission.
JB Mackenzie, vice president and general manager of futures and international at Robinhood, added: “MIAX is a market leading exchange operator and we look forward to exploring future partnership opportunities to deliver products that meet the needs of Robinhood’s customers.”