Robinhood Markets Inc. (HOOD) shares climbed in Wednesday's premarket session after the company announced it's building its own playground for futures and prediction markets. And based on what customers are already doing on the platform, this isn't just a pet project.

Building Their Own Exchange

Robinhood plans to launch an independent exchange and clearinghouse dedicated to futures, options, and prediction contracts. Think of it as bringing the operation in-house rather than renting space on someone else's platform. The company will control the joint venture and feed it retail order flow from its massive user base, while Susquehanna International Group steps in as the day-one liquidity provider and market maker.

This infrastructure push reflects something simple: customers want this stuff, and they want a lot of it. Prediction markets—where users essentially bet on real-world events—have exploded into Robinhood's fastest-growing revenue contributor in just one year. More than 1 million customers have traded roughly 9 billion contracts, which suggests the appetite for event-linked speculation is very real.

The MIAXdx Deal

To fast-track the rollout, the joint venture is acquiring MIAXdx, a subsidiary of Miami International Holdings Inc. (MIAX) that already holds critical U.S. Commodity Futures Trading Commission licenses. That means it operates as a Designated Contract Market, Derivatives Clearing Organization, and Swap Execution Facility—basically all the regulatory boxes you need checked to run this type of operation.

Under the deal structure, Robinhood (HOOD) will control the new entity while MIAX keeps a 10% equity stake. Susquehanna will anchor liquidity provision, and the venture expects to bring in additional market makers to ensure smooth execution for both retail and institutional users.

The exchange will handle order flow from Robinhood's existing derivatives operations and potentially other Futures Commission Merchants. The goal is to introduce new contracts quickly using proprietary infrastructure instead of relying exclusively on external venues.

Why This Matters Now

"Robinhood is seeing strong customer demand for prediction markets, and we're excited to build on that momentum," said JB Mackenzie, the company's vice president and general manager of futures and international. He emphasized that owning the core exchange infrastructure should enable faster innovation and a better user experience.

The partners expect the platform to begin operating in 2026, assuming regulatory approvals and closing conditions fall into place. Robinhood cautioned that licensing requirements, integration work, and other uncertainties could affect both timing and outcomes, directing investors to its Securities and Exchange Commission filings for detailed risk disclosures.

What Else Robinhood Does

Beyond prediction markets, Robinhood offers commission-free trading in stocks, options, futures, and cryptocurrencies. The platform also provides retirement accounts, cash-earning products, and managed portfolios through Robinhood Strategies. Based in Menlo Park, California, the company continues positioning itself as an accessible entry point for newer investors looking to avoid traditional brokerage fees.

October Numbers Tell the Growth Story

The new venture announcement landed alongside impressive October operating data. Robinhood Markets ended the month with 27.1 million funded customers, up about 210,000 from September and 2.6 million from October 2024. That's steady growth on an already substantial base.

Total platform assets reached $343 billion, climbing 3% month-over-month and 115% year-over-year. Net deposits hit $5.6 billion in October, representing a 20% annualized growth rate versus September assets. Over the past twelve months, net deposits totaled $68.7 billion, reflecting 43% annual growth. Those numbers suggest customers aren't just signing up—they're actively moving money onto the platform.

HOOD Price Action: Robinhood Markets shares were up 2.01% at $117.89 during premarket trading on Wednesday.