Cantor Fitzgerald is making its first serious push into prediction markets by acting as an introducing broker for approximately 3,000 institutional clients on Kalshi, a CFTC (U.S. derivatives regulator)-regulated prediction market exchange. The arrangement gives hedge funds and family offices access to block trading (large private orders), allowing sizable positions to be executed away from Kalshi's central order book and reducing the risk of moving prices against the buyer. Susquehanna International Group will provide pricing and liquidity for those trades, while Kalshi operates the exchange and Cantor supplies the institutional clientele. Brandon Lutnick, Cantor's Chairman, described the partnership as a strategic effort to bring significant institutions into prediction markets. Activity in the sector has surged following recent political developments, and sophisticated investors have shown greater interest in event-driven instruments that can offer uncorrelated return streams. Prediction markets use yes/no contracts tied to real-world outcomes, with prices ranging from zero to one dollar and roughly representing the market's implied probability of an event. Kalshi launched in 2020 and secured CFTC approval for a broad range of event contracts, but institutional participation remained limited because contracts were small, liquidity was thin and the infrastructure was unfamiliar to portfolio managers handling hundreds of millions of dollars. Bernstein has projected that prediction markets could reach $1 trillion in annual trading volume by the end of the decade.