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On Monday March 17, Robinhood Derivatives, LLC (RHD) announced a prediction markets hub directly within the Robinhood App, giving customers the opportunity to trade on the outcomes of some of the world’s biggest events. At launch, the hub will allow customers to trade contracts for what the upper bound of the target fed funds rate will be in May, as well as the upcoming men’s and women’s College Basketball Tournaments.
“We believe in the power of prediction markets and think they play an important role at the intersection of news, economics, politics, sports, and culture,” said JB Mackenzie, VP & GM of Futures and International at Robinhood. “We’re excited to offer our customers a new way to participate in prediction markets and look forward to doing so in compliance with existing regulations.”
Building a standalone prediction markets hub allows us to better serve our customers as they look to engage with events that align with their interests. Prediction markets operate within a regulated framework and leverage the power and rigor of financial market structure to facilitate greater liquidity, transparency, and price discovery.
Robinhood is committed to enabling anyone, anywhere, to trade, invest or earn on the financial assets that are available to institutions and that our retail customers want. You can read our recent policy paper on prediction markets for more information on our position and support for this emerging asset class.
The prediction markets hub–and corresponding contracts–will initially be available across the US through KalshiEX LLC, a CFTC regulated exchange. We have been in close contact with the CFTC over the past several weeks and look forward to continuing to work with them to promote innovation in the futures, derivatives and crypto markets.
These contracts will start rolling out today and will be available to all eligible customers in the coming days. For more information visit our Help Center.
Disclosures:
Restrictions and eligibility requirements apply. Futures, options on futures and cleared swaps trading involves significant risk and is not appropriate for everyone. Please carefully consider if it’s appropriate for you in light of your personal financial circumstances.
We expect the College Basketball Tournament and target fed fund rate event contracts on Robinhood to be tradeable daily from 8:00am ET until 3:00am ET.
To be eligible, customers must apply and be approved for a Robinhood Derivatives account (or already have an existing Robinhood Derivatives account). Additional trading prohibitions apply for these contracts. For the College Basketball Tournament contracts, please see Appendix B of the trading prohibitions for these contracts).
Read the Event Contracts Risk Disclosure for more information about the risks associated with event contracts.
The College Basketball Tournament and target fed funds rate event contracts are offered by Robinhood Derivatives, LLC through KalshiEX LLC. Robinhood Derivatives, LLC is a registered futures commission merchant with the Commodity Futures Trading Commission (CFTC) and Member of National Futures Association (NFA) (NFA ID 0424278). As a registered futures commission merchant, Robinhood Derivatives, LLC, does not make markets in any futures or event contracts.
The College Basketball Tournament event contracts are not endorsed by any collegiate athletic association or collegiate basketball team that is part of any collegiate basketball league, or any other company, agency, or government entity. The use of the term “College Basketball Tournament,” and the use of any collegiate team names or abbreviations or colors does not indicate an endorsement of this product.
