Cantor Fitzgerald has introduced prediction market trading for institutional investors, leveraging its existing brokerage infrastructure to facilitate event-based contracts on a regulated exchange. The move expands the investment bank’s institutional trading model, previously focused on equities and fixed income, to include contracts tied to future event outcomes.
The platform operates through Kalshi, a regulated prediction market exchange, where clients can trade contracts based on anticipated events. Liquidity and pricing are provided by Susquehanna Predictions, ensuring market depth for institutional-size trades. Pascal Bandelier, Cantor Fitzgerald’s co-CEO and Global Head of Equities, noted that institutional participation had been constrained by limited transactional scale on regulated exchanges, stating that liquidity is now available.
The development follows broader industry efforts to attract top institutional investors and hedge funds to prediction markets. In April, Bernstein projected that annual trading volume in prediction markets could reach $1 trillion by the end of the decade, reflecting growing institutional interest. Reuters previously reported in May that platforms like Kalshi were actively pursuing institutional and hedge fund participation, signaling a shift toward mainstream adoption of event-based contracts.
