Cantor Fitzgerald to Make Kalshi Prediction Market Available to 3,000 Institutional Clients

Huo Xing Finance reports that on August 19, according to The Wall Street Journal, Cantor Fitzgerald plans to open Kalshi’s prediction markets to its approximately 3,000 institutional clients, including family offices and hedge funds, enabling them to trade event contracts on weather, commodities, and corporate earnings. Susquehanna International Group will provide pricing and liquidity for these trades. Cantor will act as a broker, facilitating the purchase and sale of large volumes of event contracts for clients and potentially distributing related positions to other investors through private negotiations. Pascal Bandelier, Co-CEO of Cantor, noted that hedge funds have expressed interest in trading event contracts tied directly to iPhone sales volumes rather than indirectly through Apple’s stock price; family offices are focused on using weather, crop yield, and oil price contracts for risk hedging. Joe Grubb, Head of Business Development for Susquehanna Predictions, said AI supply chain risks and computing power prices could also become use cases for prediction markets. Institutional clients may also propose new market themes based on their specific needs, and the companies have already engaged with investors to discuss desired contract types. Over the past few months, Kalshi has intensified its efforts to expand its institutional client base, completing its first large-scale trade this year and partnering with Interactive Brokers. Max Crowley, Vice President of Business Development at Kalshi, stated that institutional demand for hedging specific event risks already exists.