Cantor Fitzgerald launches prediction market trading for institutional investors via Kalshi

On August 19, 2026, investment bank Cantor Fitzgerald launched prediction market trading for its 3,000 institutional clients, allowing them to trade event contracts on the CFTC-regulated exchange Kalshi. Cantor Fitzgerald will act as an introducing broker for block trades, while Susquehanna Predictions will provide pricing and liquidity. This move aims to transition prediction markets from retail betting into institutional risk-hedging tools, even as Kalshi faces a $36 billion lawsuit from New York State.

Cantor Fitzgerald institutional market access

• ▪Cantor Fitzgerald launched prediction market trading on August 19, 2026, allowing its institutional clients to trade event contracts on the regulated exchange Kalshi.
• ▪Cantor Fitzgerald plans to provide approximately 3,000 institutional clients with access to block trading in event contracts.
• ▪Cantor Fitzgerald will act as an introducing broker to arrange, negotiate, and facilitate the execution of institutional-size block trades in event contracts.

Kalshi block trading infrastructure

• ▪Kalshi's block trading framework allows institutional clients to negotiate and execute block trades in event contracts at a single price away from the central order book.
• ▪Kalshi partnered with Interactive Brokers to offer event contract trading to professional traders, hedge funds, and sophisticated investors.
• ▪Kalshi completed its first institutional block transaction earlier in 2026, utilizing a specialized contract pegged to California's carbon credit allowances.

Susquehanna liquidity provision role

• ▪Susquehanna International Group serves as Kalshi's primary market maker and dedicated liquidity provider for event contracts.
• ▪Susquehanna Predictions, a unit of Susquehanna International Group, will provide institutional-scale pricing and liquidity for the prediction market trades facilitated by Cantor Fitzgerald.

CFTC regulated exchange framework

• ▪The New York City Council launched an investigation in August 2026 into Kalshi, Polymarket, Coinbase, and Gemini Titan over allegations of deceptive marketing and targeting minors.
• ▪The Commodity Futures Trading Commission regulates Kalshi, making it one of the few regulated exchanges offering event contracts to institutional investors.
• ▪The state of New York filed a lawsuit against Kalshi accusing it of operating an unlicensed gambling business and seeking up to $36 billion in damages.
• ▪The Commodity Futures Trading Commission invoked its emergency authority in August 2026 to allow Kalshi to remain in operation despite a lawsuit by the state of New York.

Institutional investor demand trends

• ▪Institutional investors are seeking event contracts to hedge risks related to weather, agricultural commodities, AI infrastructure networks, and computational capacity pricing.
• ▪Hedge funds are utilizing event contracts tied to iPhone unit sales volumes as an alternative to holding traditional equity positions in Apple.

Prediction market growth projections

• ▪Susquehanna Predictions head of business development Joe Grubb stated that the next phase of material growth for prediction markets will be large institutional risk transfer.
• ▪A Bernstein report from April 2026 projected that prediction markets could reach $1 trillion in annual trading volumes by the end of the decade.