Cantor Fitzgerald Launches Block Trading for Prediction Markets

The landscape of prediction markets is undergoing a significant professional transformation. On August 20, 2026, Cantor Fitzgerald, a premier global investment bank, announced the launch of institutional trading for event contracts. This development positions the firm as one of the first full-service investment banks to offer institutional clients access to block trading on a government-regulated exchange. It marks a departure from the perception of prediction markets as niche platforms for small-scale retail participants.

Under this new framework, institutional investors can negotiate large-scale trades at a single price point without impacting the public market price. These transactions are facilitated through Kalshi’s block trading infrastructure, which operates under the oversight of the Commodity Futures Trading Commission (CFTC) in the United States. Cantor Fitzgerald is applying its long-standing expertise from equities and fixed income markets to this emerging regulated asset class, bridging the gap between traditional finance and event-based derivatives.

Numbers and facts

A critical component of this launch is the collaboration with Susquehanna Predictions, a division of the Susquehanna International Group. Susquehanna is recognized as a leading liquidity provider in the event contract space, offering the scale necessary for institutional-grade pricing. The new business unit at Cantor Fitzgerald operates within its Global Markets division, led by Co-CEOs Pascal Bandelier and Christian Wall.

Bandelier views this step as a natural evolution for the firm. He pointed out that while prediction markets are expanding rapidly, institutional participation has lagged due to a lack of scalability on regulated platforms. By introducing block trading through a trusted intermediary, the firm aims to meet the growing demand from sophisticated investors who require high-volume execution.

"Cantor has spent more than eighty years building institutional access to new markets, and prediction markets are the next one. Prediction markets are growing rapidly, but institutional participation has not kept pace because investors have lacked the ability to transact at scale on a regulated exchange." - Pascal Bandelier, Co-CEO and Global Head of Equities at Cantor Fitzgerald

Background

Prediction markets allow participants to trade on the outcome of real-world events, ranging from economic indicators to political results. In a professional context, these instruments are frequently utilized for hedging risks. For example, a corporation might purchase contracts that payout if a specific regulatory change occurs, offsetting potential operational losses.

Max Crowley, VP of Business Development at Kalshi, noted that Cantor Fitzgerald is an ideal partner due to their creative approach to integrating event contracts into client portfolios. The goal is to identify new use cases and hedging opportunities that traditional insurance markets currently do not cover. Joe Grubb of Susquehanna added that the firm can price and execute tailored contracts quickly, providing a solution for unmet market demand regarding both general and bespoke industry risks.

Why it matters for German players

For individual players in Germany, this institutional shift does not have an immediate impact on their daily interaction with online casinos. However, the emphasis on CFTC regulation in the US highlights the importance of state oversight in building trust. In Germany, gambling is strictly governed by the Interstate Treaty on Gambling 2021 (GlüStV 2021). Anyone wishing to participate in legal gambling must ensure the provider is listed on the official whitelist of the Joint Gambling Authority of the States (GGL).

German players are subject to rigorous player protection rules, including a cross-operator monthly deposit limit of 1,000 Euros, monitored by the LUGAS system. Furthermore, virtual slot machines carry a 1 Euro stake limit per round. The Cantor Fitzgerald development shows that regulation is the key to mainstream acceptance. While the CFTC ensures fair trading in the US, the GGL ensures fairness and protection in the German online gambling market. Unlicensed offerings lack these safeguards and should be avoided.

What it means for GGL-licensed casinos

The professionalization of prediction markets could eventually lead German licensees to explore similar products within a regulated framework, provided they align with German law. Currently, GGL-licensed operators focus mainly on virtual slots, poker, and sports betting. However, the entry of a major investment bank like Cantor Fitzgerald signals that event-based wagering is gaining legitimacy as a financial and risk-management tool globally.

German operators must stay informed on how the boundary between financial products and gambling continues to shift. In Germany, this distinction is very sharp. While Kalshi operates as an exchange in the US, similar products in Germany might fall under betting monopolies or specific gambling regulations. The transparency and liquidity offered by Cantor Fitzgerald could serve as a blueprint for future standards in handling large-scale bets or complex wagering products, provided European regulatory hurdles allow for such innovation.