CMB Stock News Of The Day 📰🗞️🗞️📈📉

“Robinhood Rallies on New Joint Venture to Expand Its Prediction Markets Footprint” 🚨🚨🚨

Shares of Robinhood Markets (HOOD $123.83, +7.15%) are climbing in premarket trading after the brokerage announced a new joint venture with Susquehanna to accelerate its expansion into prediction markets — one of the fastest-growing segments of its platform.

The partnership will launch an independent futures and derivatives exchange and clearinghouse, with Robinhood as the controlling partner and Susquehanna as the liquidity provider. Operations are expected to begin next year, marking a major step toward bringing event-based trading fully in-house. As part of the rollout, the joint venture will acquire 90% of MIAXdx, a derivatives exchange previously part of FTX — giving Robinhood deeper market access and infrastructure.

(Disclosure: Robinhood Markets Inc. is the parent of Sherwood Media, which operates independently with regulatory restrictions.)

Until now, Robinhood’s event contracts — which allow traders to buy positions based on the outcome of real-world events — have been tied to external platforms like KalshiEx LLC and ForecastEx LLC. The new exchange structure changes that. By controlling the backend, Robinhood stands to capture more revenue and build new markets at a faster cadence, powered by its already massive retail distribution network.

The company highlighted its momentum clearly in its press statement:

“Prediction Markets have quickly become Robinhood’s fastest-growing product line by revenue. Just one year since launch, 9 billion contracts have been traded by more than 1 million Robinhood customers. By introducing a robust, institutional-grade exchange to the market, we’ll add more choices for consumers. We’ll also gain the flexibility to build faster and deliver more contracts and services to traders.”

Still, not everyone is cheering without caution. Bank of America analysts recently flagged emerging credit risks tied to prediction markets and online gambling — suggesting fast adoption also brings regulatory and risk-management pressure.

With a new exchange coming online, a controlling partnership structure, and retail demand already scaling quickly, Robinhood is positioning itself as a major player in the future of event-based trading. The market is taking notice.