Investing.com -- Robinhood (NASDAQ:HOOD) Derivatives, LLC (RHD) has announced the introduction of a prediction markets hub within the Robinhood App. This new feature gives customers the chance to trade on the outcomes of major global events. Initially, the hub will enable customers to trade contracts for the upper limit of the target fed funds rate in May, along with the results of the forthcoming men’s and women’s College Basketball Tournaments.
JB Mackenzie, VP & GM of Futures and International at Robinhood, expressed the company’s belief in the potential of prediction markets. He highlighted their importance at the crossroads of various sectors such as news, economics, politics, sports, and culture. Mackenzie expressed excitement about providing customers with a novel way to participate in prediction markets, emphasizing the company’s commitment to comply with existing regulations.
The establishment of a standalone prediction markets hub is aimed at better serving customers by allowing them to engage with events that match their interests. Prediction markets function within a regulated framework and utilize the strength and discipline of the financial market structure to foster improved liquidity, transparency, and price discovery.
Robinhood is dedicated to empowering anyone, anywhere, to trade, invest, or earn on the financial assets that are accessible to institutions and that their retail customers desire. The company’s recent policy paper on prediction markets offers more details on their stance and support for this emerging asset class.
The prediction markets hub and the associated contracts will initially be accessible across the United States through KalshiEX LLC, a CFTC regulated exchange. Robinhood has maintained close communication with the CFTC in recent weeks and anticipates continued collaboration with them to encourage innovation in the futures, derivatives, and crypto markets.
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