Robinhood explores launching prediction markets outside the US

"Robinhood Markets Inc. is exploring an expansion of its prediction markets product to countries outside of the US, a move that would broaden the reach of the already fast-growing and often controversial industry. The brokerage has been speaking to overseas regulators like the UK's Financial Conduct Authority about how it might offer prediction markets locally, as demand for the space continues to grow."

"At issue is how such products might be structured and regulated while prediction markets are considered futures products in the US, they're often lumped in with gambling in other regions. It's a swap here in the United States. So the question would be where is swap oversight, let's say in the UK? That's a question that we've been asking the FCA, how do we work it? JB Mackenzie, vice president and general manager of futures and international at Robinhood, said in an interview this month."

Robinhood is exploring expansion of its prediction-markets product beyond the United States, citing rising customer interest in the UK and Europe. The firm has engaged overseas regulators, including the UK's Financial Conduct Authority, to determine how to structure and oversee such offerings locally. In the United States, prediction markets are treated as futures and operate as swaps regulated by the Commodity Futures Trading Commission, while other jurisdictions often classify similar products as gambling. Robinhood currently offers US trading via partnerships with Kalshi and ForecastEx and views prediction markets as a growth opportunity amid rising demand.

Read at www.mercurynews.com