Robinhood Markets Picks Up 90% Stake in MIAX Derivatives Exchange

MIAX is set to offload a 90% stake in its derivatives exchange – MIAXdx – to Robinhood Markets, in partnership with Susquehanna International Group, according to a story in The Trade news. Following close of the transaction, MIAX has confirmed that it will retain 10% of the issued and outstanding equity in the exchange and clearinghouse. Specifically, MIAXdx is a Designated Contract Market (DCM) and Derivatives Clearing Organisation (DCO) which is approved to list and clear fully collateralised futures, options on futures and swaps. Thomas Gallagher, chair and chief executive of MIAX, said: “Through our retained equity stake, the transaction will provide MIAX with access to the growing prediction markets on an expedited basis.  The transaction with Robinhood closely aligns with our strategy of partnering with industry leaders to offer innovative trading products to the market, and we’re excited about the opportunity to gain exposure to prediction markets through this initiative. The transaction represents a logical step forward for MIAX as we continue to focus on strategic growth opportunities within our core exchanges. We have evaluated alternatives to facilitate our entry to the prediction markets, and we believe that today’s strategic alignment is the right lever for offering institutional and retail futures traders exposure in the growing prediction markets while providing MIAX with potential long-term value.”