Cantor Fitzgerald said Wednesday that it has launched institutional trading for prediction markets. 

As a result, the firm becomes one of the first full-service investment banks to give institutional clients access to block trading in event contracts on a CFTC-regulated exchange.

Cantor will act as an introducing broker, arranging and facilitating institutional-size block trades in event contracts. This will allow clients to negotiate block trades at a single price through Kalshi’s block trading framework, away from the central order book. 

Cantor is also collaborating with Susquehanna Predictions, part of the Susquehanna International Group, to provide institutional-scale pricing and liquidity.

Cantor said it is applying the institutional trading model it has developed across equities and fixed income to a new regulated asset class, running the business within its Global Markets division. It will initially facilitate block trades on Kalshi, with additional venues expected to follow.

“Cantor has spent more than eighty years building institutional access to new markets, and prediction markets are the next one,” stated Pascal Bandelier, co-chief executive and global head of equities at Cantor. 

“The liquidity is here. With the launch of block trading, institutional investors can now access block trading in event contracts through an institutional intermediary they know and trust.”

Joe Grubb, head of business development at Susquehanna Predictions, said the next area of material growth for prediction markets would be large institutional risk transfer, adding that the firm can price and execute custom contracts for counterparties seeking to hedge risk unserved by traditional insurance markets.