Key Takeaways
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- New exchange: Robinhood and Susquehanna International Group plan a futures and derivatives exchange focused on expanding prediction-style contracts.
- Acquisition: The exchange will acquire MIAXdx, a business that clears and executes derivatives trades.
- Timeline: The exchange targets a 2026 launch.
- Ownership: Miami International Holdings (MIAXdx’s parent) will hold a 10% stake in the new exchange.
- Demand signal: Robinhood says prediction markets became its fastest-growing product line by revenue, with >1M customers trading ~9B contracts over the past year (via its Kalshi partnership).
What Happened?
Robinhood announced the creation of a new, jointly launched exchange with Susquehanna to broaden its prediction contracts beyond current offerings, alongside the acquisition of MIAXdx to support the clearing/execution plumbing needed for derivatives products.
Why It Matters
This is Robinhood moving from “distribution-only” (offering access through partners) toward more control of market infrastructure (exchange + clearing/execution capability). If executed well, it can:
- expand product breadth (more event contracts),
- improve economics (more of the value chain),
- and increase stickiness for active traders.
It also likely increases regulatory and operational complexity versus simply routing users to third-party venues.
What’s Next
- Regulatory approvals and build-out of exchange operations ahead of a 2026 go-live.
- Integration of MIAXdx into Robinhood’s derivatives stack.
- Watch for: initial contract categories (sports/elections/other events), liquidity/market-making structure, and whether Robinhood can sustain the volume growth it cites from the past year.
