Robinhood and Susquehanna International Group are moving forward with a significant expansion into the prediction markets sector by forming a new joint venture that will operate its own futures and derivatives exchange. The initiative follows the acquisition of a 90% interest in MIAX Derivatives Exchange (MIAXdx), a regulated platform previously owned entirely by Miami International Holdings. MIAXdx is licensed by the Commodity Futures Trading Commission (CFTC) to function as a Designated Contract Market and Derivatives Clearing Organization, enabling it to list and clear futures, options on futures, and swaps.

According to announcements from the companies, MIAX will keep the remaining 10% stake in MIAXdx, granting it continued involvement as the exchange transitions under Robinhood and Susquehanna’s leadership. The purchase price for the majority stake has not been disclosed, but the deal positions the partners to broaden their reach into prediction contracts tied to elections, sports competitions, and other real-world events. The new exchange plans to begin operations in 2026, pending regulatory approvals and customary closing steps expected to conclude in the first quarter of that year.

Thomas P. Gallagher, Chairman and CEO of MIAX, emphasized the strategic alignment, stating that the agreement would give the company expedited exposure to the expanding prediction-markets landscape. He noted, “The transaction with Robinhood closely aligns with our strategy of partnering with industry leaders to offer innovative trading products to the market, and we’re excited about the opportunity to gain exposure to prediction markets through this initiative.”

How Robinhood and Susquehanna Will Shape the Venture

Robinhood will serve as the controlling partner, offering the new exchange broad access to its retail customer base and distribution network. Susquehanna, one of the most influential global market makers, will participate as a founding liquidity provider on day one, with additional liquidity partners anticipated in the future.

JB Mackenzie, who leads futures and international efforts at Robinhood, said the company is responding to sharp growth in customer interest. “Robinhood is seeing strong customer demand for prediction markets, and we’re excited to build on that momentum,” he said according to The Closing Line. “Our investment in infrastructure will position us to deliver an even better experience and more innovative products for customers.”

MIAX executives and Robinhood leaders both highlighted plans to collaborate on further product development. Mackenzie added, “MIAX is a market leading exchange operator and we look forward to exploring future partnership opportunities to deliver products that meet the needs of Robinhood’s customers.”

Expansion Follows Rapid Growth Through Kalshi Partnership

Robinhood’s push into running its own exchange comes after a year of striking growth tied to its partnership with Kalshi, another CFTC-regulated prediction market. The platform has rapidly become the company’s fastest-growing business unit by revenue. Over the past year alone, more than one million Robinhood customers traded roughly nine billion contracts. Internal earnings data indicated that Robinhood accounted for more than half of Kalshi’s trading volume in October.

Susquehanna also maintains deep connections to Kalshi by providing substantial market-making liquidity. These overlapping relationships position both firms to pivot seamlessly into operating an independent venue once the joint venture launches.

However, the expansion is not without regulatory hurdles. A recent Nevada federal court decision reversed an earlier injunction that had allowed Robinhood and Kalshi to offer sports-related prediction contracts in the state, adding uncertainty to the broader industry’s trajectory.