Cantor Fitzgerald has introduced prediction market trading for institutional clients, enabling event-based contracts on the regulated Kalshi exchange. The move marks the first expansion of Cantor’s institutional trading infrastructure—previously limited to equities and fixed income—into prediction markets.
The brokerage will act as an introducing broker, facilitating large-scale trade negotiations for clients. Pricing and liquidity for the contracts will be provided by Susquehanna Predictions. Cantor’s co-CEO and Global Head of Equities, Pascal Bandelier, stated that while prediction markets are expanding rapidly, institutional participation had lagged due to limited regulated exchange access and insufficient liquidity.
The announcement follows increased interest in event-driven and prediction contracts, particularly after retail trading surged during the 2024 U.S. presidential election. Bernstein estimates prediction markets could reach $1 trillion in annual trading volumes by the end of the decade, driven by growing institutional and hedge fund engagement.
The initiative aligns with broader efforts by financial institutions to capitalize on the liquidity and transparency offered by regulated prediction markets.
