Robinhood and Susquehanna to Launch Futures Exchange by 2026

Robinhood and Susquehanna to Launch Futures Exchange by 2026

Robinhood and Susquehanna announce plans to launch futures exchange by 2026, focusing on prediction markets and derivatives.
Key Points:
  • Robinhood collaborates with Susquehanna for futures exchange by 2026.
  • MIAXdx acquisition sets regulatory groundwork.
  • Focus on prediction markets and derivatives.

Robinhood Markets, Inc. and Susquehanna International Group plan to launch a joint futures and derivatives exchange by 2026, following their acquisition of MIAXdx with regulatory backing.

The venture marks a significant move into regulated prediction markets, potentially reshaping retail and institutional trading opportunities while expanding Robinhood’s footprint in financial derivatives.

Robinhood Markets, Inc. and Susquehanna International Group have announced plans to launch a futures exchange by 2026. The effort focuses on expanding retail and institutional access to prediction markets and derivatives.

Robinhood will be the controlling partner, while Susquehanna will provide initial liquidity. This venture includes acquiring MIAXdx, a company with essential CFTC licenses for futures trading.

The launch is expected to impact markets significantly by increasing accessibility to prediction and derivatives markets. Enhanced market liquidity is anticipated with Susquehanna’s involvement. JB Mackenzie, VP and General Manager of Futures and International at Robinhood, stated, “We are excited to announce this venture, highlighting the robust demand from our customers for innovative trading solutions in the prediction markets ecosystem.”

The strategic move is expected to expand Robinhood’s markets, complementing its existing crypto and securities offerings. It sets a precedent for retail futures trading under U.S. regulations.

Details of the execution indicate a coordinated strategy between conventional and innovative financial instruments. The companies prepare to leverage market-making expertise and robust infrastructure.

While traditional finance sees limited involvement from crypto, the move reflects growing interest in regulated derivatives. Historical trends show increased demand for such products, likely impacting regulatory standards and industry practices.