CoinDesk
Cantor Fitzgerald said Wednesday it will give roughly 3,000 institutional clients direct access to prediction-market block trades on CFTC-regulated Kalshi. Cantor acts as the executing broker while Susquehanna International Group supplies institutional-scale pricing and liquidity. The arrangement is the first full-service investment-bank rail of its kind for event contracts in the US, putting prediction markets on the same trading infrastructure as equities and futures.
Why it matters
The move reframes Kalshi from a retail-first election-and-sports venue into a venue that can absorb real Wall Street risk-transfer flow. Block-trade access paired with a designated market maker is the same setup equity desks already use to move size in single-name stocks and futures, so Cantor clients can now hedge or express macro and policy views through event contracts without slicing orders across thin retail liquidity. Pascal Bandelier, co-CEO and global head of equities at Cantor, framed the gap plainly: institutional participation has lagged because investors have lacked the ability to transact at scale on a regulated exchange.
Market impact
Kalshi completed its first block trade earlier this year and added Interactive Brokers as a distribution partner, so the Cantor relationship layers a second institutional channel on top. Joe Grubb of Susquehanna Predictions said large institutional risk transfer will be the next material growth lane for the sector. For the broader derivatives stack, the read is straightforward: when Cantor and Susquehanna are willing to underwrite size on a CFTC-regulated book, event contracts start competing with single-name options and futures for the same hedging dollars.
Frequently asked questions
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What did Cantor Fitzgerald announce about Kalshi?
Cantor said Wednesday it will give roughly 3,000 institutional clients access to large prediction-market block trades on CFTC-regulated Kalshi, with Cantor acting as the executing broker.
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Who is providing liquidity for the Cantor-Kalshi block trades?
Susquehanna International Group supplies institutional-scale pricing and liquidity for the block trades arranged by Cantor.
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Why are prediction markets drawing institutional interest now?
Cantor co-CEO Pascal Bandelier said institutional participation had lagged because investors lacked the ability to transact at scale on a regulated exchange, and that the liquidity is now in place.
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Has Kalshi worked with other institutional partners before Cantor?
Yes. Kalshi completed its first block trade earlier this year and already partnered with Interactive Brokers, whose platform serves professional traders, hedge funds and other sophisticated investors.
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What is the next growth area for prediction markets?
Joe Grubb of Susquehanna Predictions said large institutional risk transfer will be the next area of material growth for prediction markets.
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