Cantor Fitzgerald partners with Kalshi to boost institutional access to prediction markets

Cantor Fitzgerald is making its first serious push into prediction markets, and it’s bringing a few thousand friends along. The full-service investment bank announced it will act as an introducing broker for approximately 3,000 institutional clients, giving hedge funds and family offices access to block trading on Kalshi, the CFTC-regulated prediction market exchange. The partnership effectively solves one of the biggest problems that has kept institutional money on the sidelines of prediction markets: scale. Block trades allow large orders to be executed privately, away from the central order book, meaning a hedge fund can take a meaningful position on, say, the next Fed rate decision without moving the market against itself. How the plumbing works Cantor isn’t going it alone on the market-making side. Susquehanna International Group, one of the largest quantitative trading firms in the world, will provide pricing and liquidity for the block trades. Think of it as a three-legged stool: Kalshi runs the exchange, Cantor brings the clients, and Susquehanna makes sure there’s someone on the other side of every trade. Brandon Lutnick, Cantor’s Chairman, framed the move as a strategic e...