Robinhood has shared a new feature within its Robinhood Derivatives, LLC (RHD) unit, introducing a “prediction markets” hub directly within the Robinhood App. This addition enables customers to trade contracts on the outcomes of major events across various sectors, starting with the target fed funds rate in May and the men’s and women’s NCAA “March Madness” College Basketball Tournaments.

The prediction markets hub will allow Robinhood users to engage in trades on these events daily, from 8:00 a.m. ET to 3:00 a.m. ET. Robinhood aims to provide a platform for those interested in predicting the outcomes of significant financial and sporting events. The feature marks the company’s further expansion into event-based trading, following the success of its previous event contract for the 2024 U.S. Presidential Election.

Robinhood Introduces Prediction Markets for Major Events

The move comes after Robinhood withdrew an NFL Super Bowl event contract following pressure from the Commodity Futures Trading Commission (CFTC), which oversees derivatives markets. Despite this setback, the prediction markets hub represents a bold push by Robinhood into the world of sports betting and event contracts, directly competing with heavily regulated sportsbooks like DraftKings and FanDuel.

Robinhood stated that the creation of a standalone prediction markets hub aims to better serve customers who are eager to participate in events they care about, within a regulated framework. By leveraging financial market structures, the company seeks to offer increased liquidity, transparency, and price discovery.

The contracts will initially be available to U.S. customers through KalshiEX LLC, a CFTC-regulated exchange. Robinhood has worked closely with the CFTC in recent weeks and expressed a commitment to promoting innovation in futures, derivatives, and crypto markets.

Also, the markets hub will roll out today and be accessible to all eligible Robinhood customers in the coming days. To participate, users must apply for a Robinhood Derivatives account or already have an existing account.

Also, stay updated with the Latest Broker News.