Cantor to Broker Kalshi Prediction Market Block Trades

Cantor Fitzgerald will offer its roughly 3,000 institutional clients access to Kalshi’s prediction markets and will broker large block trades of yes-or-no event contracts. The bank will arrange purchases and sales of sizable positions and distribute those positions through privately negotiated transactions.

Kalshi’s contracts settle as binary outcomes and cover events such as weather, commodity prices, corporate results and other economic measures. Hedge funds have shown interest in markets that let them take direct positions on specific business outcomes, for example contracts tied to iPhone sales rather than trading Apple shares. Family offices are examining contracts to manage exposure to weather and commodity-related risks, including crop production and oil-price moves.

Cantor will act as a broker, not a market maker. The firm will seek counterparties among its institutional client base and manage execution and liquidity for concentrated positions that may be too large for public order books.

Susquehanna International Group will supply pricing and liquidity through its Susquehanna Predictions unit and will serve as Kalshi’s primary market-making partner. Joe Grubb, head of business development at Susquehanna Predictions, added that institutions are considering contracts linked to risks around AI supply chains and the cost of computing capacity.

Pascal Bandelier, Cantor’s co-chief executive and global head of equities, noted investors have shown “significant interest in gaining access to prediction markets.” Investors will be able to propose new markets, and Kalshi and Susquehanna have discussed potential contracts with institutional participants.

Kalshi has been building infrastructure to support larger institutional flows. Earlier this year the platform completed its first block trade, a California carbon-allowance contract created for that transaction. The company has also partnered with Interactive Brokers to broaden access for retail and professional traders as it expands available event-based instruments.