Nov. 26 at 11:36 AM
Piper Sandler y'day reit'd
$HOOD Overweight-
$155 and said—HOOD-Susquehanna announce new prediction market exchange JV; purchase a 90% stake in MIAXdx.
$MIAX $COIN $SCHW $GS MS
Piper Sandler additionally said:
After the close today, MIAX & HOOD announced an agreement by which MIAX will sell a 90% stake in MIAXdx to a JV operated by HOOD & Susquehanna International Group (MIAX retaining 10% equity). MIAXdx holds a suite of derivatives licenses, including a DCM (Designated Contract Market), DCO (Derivatives Clearing Organization), and SEF (Swap Execution Facility), which will allow SIG & HOOD to build a prediction markets exchange.
Up to this point, HOOD has been leveraging exchanges like Kalshi & ForecastEx for its prediction market offering. The transaction value was not disclosed. The deal is expected to close in 1Q26.
Bottom line, we view this as quite positive for Robinhood who we estimate will receive a ~45% boost on its prediction market economics on contracts traded through the new JV.
