Robinhood, Susquehanna Partner on New Exchange to Revolutionize Prediction Markets
San Francisco, CA — In a move poised to significantly shake up both the fintech landscape and the burgeoning world of event-based trading, Robinhood and Susquehanna International Group (SIG) are joining forces to launch a new, dedicated exchange focused on expanding prediction market offerings. This ambitious venture aims to bring a new level of accessibility and liquidity to contracts tied to everything from sports outcomes and election results to other future events, leveraging Robinhood's massive user base and Susquehanna's unparalleled market-making prowess.
The new platform, tentatively named Apex Futures, is expected to go live in early 2025, pending regulatory approvals. Its core mission: to allow Robinhood's tens of millions of users to engage with a diverse array of event contracts, providing a novel way to speculate on — and hedge against — real-world occurrences. For Robinhood, this marks a strategic diversification beyond traditional equities and crypto, tapping into a market segment that promises high engagement and new revenue streams.
"This isn't just about offering another trading product; it's about empowering our users with tools to express their views on the future in a regulated, transparent environment," stated a source close to the matter at Robinhood, speaking on background. "We've seen the incredible interest in prediction markets, and by partnering with a market leader like Susquehanna, we believe we can build the most robust and fair platform out there."
Indeed, Susquehanna's involvement is a game-changer. As one of the world's largest and most sophisticated quantitative trading firms, SIG brings deep expertise in market structure, liquidity provision, and risk management. Their role will be crucial in ensuring Apex Futures can handle significant volume, maintain tight spreads, and operate with the integrity demanded by regulators.
"The challenge in prediction markets has always been liquidity and regulatory clarity," explained a veteran commodities trader. "Susquehanna solves the liquidity problem immediately, and their understanding of complex derivatives will be invaluable in navigating the CFTC's evolving stance on event contracts."
The U.S. regulatory landscape for prediction markets has been notoriously complex. While the Commodity Futures Trading Commission (CFTC) has approved a handful of platforms, such as Kalshi, to offer event contracts, the path has been fraught with challenges. The recent shutdown of PredictIt, a long-standing academic prediction market, underscored the regulatory tightrope these platforms must walk, particularly concerning political events. This partnership, however, signals a serious intent to operate within established regulatory frameworks, aiming for broad CFTC approval.
For Robinhood, the move represents a calculated step in its ongoing evolution. After pioneering commission-free stock trading and democratizing access to financial markets, the company has been exploring new avenues for growth and user engagement. Prediction markets offer a potentially viral product that blends elements of finance with popular culture, sports, and current events. Imagine trading contracts on whether a specific sports team wins the championship, or which political party gains control of Congress – all within the familiar Robinhood interface.
The market potential is significant. While still nascent in the U.S. compared to traditional betting markets, global prediction markets are projected to be worth billions of dollars in the coming years. By marrying Robinhood's massive, digitally native user base with Susquehanna's institutional-grade infrastructure, Apex Futures could quickly become a dominant player, eclipsing smaller, less capitalized competitors.
"This is a brilliant strategic move for both firms," notes Sarah Chen, a fintech analyst at Global Market Insights. "Robinhood gets a high-engagement product and an incredibly credible partner to help them navigate complex financial products and regulation. Susquehanna gets to be at the ground floor of what could become a massive new asset class, leveraging their core competencies in market making and quantitative analysis."
The partnership also highlights a broader trend in finance: the gamification of trading and the blurring lines between traditional investing and alternative forms of speculation. While critics often raise concerns about the speculative nature of prediction markets, proponents argue they can serve as valuable tools for aggregating information, forecasting outcomes, and even hedging against personal or business risks.
As Apex Futures prepares for its launch, the industry will be watching closely. This collaboration between a retail trading giant and a sophisticated institutional powerhouse could very well redefine the future of prediction markets, offering a regulated, liquid, and accessible platform for millions to bet on tomorrow, today.
