Cantor Fitzgerald has launched prediction market trading for institutional investors, enabling clients to trade event contracts on the regulated exchange Kalshi. This move expands Cantor's existing trading model to prediction markets, aiming to facilitate large-scale transactions for institutional clients.
This launch signifies a significant step in legitimizing and scaling prediction markets for institutional finance, potentially unlocking substantial new trading volumes and investment strategies by bridging the gap between event-driven trading and traditional financial markets.
Cantor Fitzgerald has introduced prediction market trading for its institutional investor clients, allowing them to trade contracts based on the outcomes of future events via the regulated exchange Kalshi. This initiative extends Cantor's established institutional trading capabilities in equities and fixed income to the rapidly growing prediction market sector.
Pascal Bandelier, Cantor's co-CEO and Global Head of Equities, stated that institutional participation in prediction markets has been limited by the lack of large-scale transaction capabilities on regulated platforms. He emphasized that Cantor's involvement aims to address this gap by providing the necessary liquidity.
Bernstein analysts projected in April that prediction markets could achieve annual trading volumes of up to $1 trillion by the end of the decade. Cantor will function as an introducing broker, negotiating institutional-sized trades, while Susquehanna Predictions will supply pricing and liquidity. This development follows a reported push by prediction market platforms like Kalshi to attract major institutional investors and hedge funds, with interest in these markets surging during the 2024 U.S. presidential election cycle.