Robinhood Adds Sports Bet And Federal Reserve Rate To Its Prediction Hub
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Robinhood has announced the expansion of its trading offerings with the addition of a new prediction markets section. According to the online trading giant, the new features will help users to trade on outcomes of popular events. It also offers traders the opportunity to speculate on the interest rate of the Federal Reserve’s decisions as well as college basketball tournaments.
Vice President of Futures and International at Robinhood, JB Mackenzie, commented on the additional features. He noted that the platform believes in the strength of the predictions markets and believes that they play vital roles at the intersection of culture, sports, politics, economics, and news.
“We’re excited to offer our customers a new way to participate in prediction markets,” Mackenzie stated, adding that the platform is looking forward to strong participation while complying with the existing laws.
Robinhood Says It Wants To Offer Users More Options On Its App
The unique prediction markets hub will be available in Robinhood’s trading app. The new features will allow its users to participate in event-based trading by buying contracts linked to real-world outcomes. Following the introduction of the additional features, users can now trade contracts both on men’s and women’s college basketball tournaments, according to Robinhood.
Once the feature is rolled out, it will offer support trades for those looking to speculate on the Federal Reserve’s target interest rate. The new hub will operate via KalshiEX, an exchange regulated and supervised by the Commodity Futures Trading Commission (CFTC).
The introduction of the new trading feature will enable Robinhood to offer users more options for engaging with events that align with their trading goals and interests.
Robinhood To Add Other Real-World Outcomes In The Future
The firm also stated that the new prediction market hub is overseen by regulated authorities and operates within the confines of the law. This means Robinhood will continue to ensure liquidity and transparency within a regulated framework.
Robinhood also stated that the platform will continue to comply with the regulatory framework in the industry as it is in close discussions with the CFTC. According to the firm, the new feature aligns with its wider goal of making its financial markets more accessible and adding more features for its users.
The move is another evidence that more financial institutions are joining the trend of integrating real-world events into trading strategies.
Although the initial expansion will focus on sports and interest rates, it hopes to expand into geopolitical developments, corporate earnings, and elections.
