Cantor Fitzgerald launches prediction market trading for institutions

Investing.com -- Cantor Fitzgerald introduced prediction market trading for institutional investors on Wednesday, enabling clients to trade event contracts on the regulated exchange Kalshi.

The investment bank is extending its institutional trading model, previously used for equities and fixed income, to prediction markets. These markets allow investors to trade contracts based on the outcomes of future events.

Pascal Bandelier, Cantor's co-CEO and Global Head of Equities, said prediction markets are growing rapidly, but institutional participation has lagged because investors lacked the ability to transact at scale on a regulated exchange. "The liquidity is here," Bandelier said.

Bernstein projected in April that prediction markets could reach $1 trillion in annual trading volumes by the end of the decade.

Under the arrangement, Cantor will serve as an introducing broker and handle institutional-size trade negotiations. Susquehanna Predictions will provide pricing and liquidity for the trades.

In May, Reuters reported that prediction market platforms including Kalshi were pursuing top institutional investors and hedge funds.

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