Robinhood has initiated the routing of customer trades in prediction markets through Rothera, its newly established exchange in collaboration with Susquehanna. Although initial trading volumes are modest, this move indicates a significant strategic shift for the company.
During the Chicago White Sox versus Detroit Tigers game on May 30, many Robinhood traders unknowingly executed their contracts via Rothera, the exchange jointly owned with Susquehanna and regulated by the CFTC.
Over the weekend, Rothera processed approximately $2.1 million in trades, with around 85% attributed to the White Sox-Tigers contract, as reported by InGame.
Despite the modest trading volume, this weekend offered a glimpse into Robinhood's plans to enhance its infrastructure for event contracts, a segment that has traditionally depended on Kalshi’s exchange framework.
Rothera is a joint venture between Robinhood and Susquehanna International Group (SIG), a proprietary trading firm based in Pennsylvania. SIG already engages in market-making activities that are vital across various prediction platforms.
Registered with the CFTC as both a Designated Contract Market and a Derivatives Clearing Organization, Rothera can independently list and clear its contracts without needing third-party involvement. This structure allows it to avoid additional fees typically incurred through other exchanges.
Limited trading on Rothera commenced on May 21, following the self-certification of its inaugural sports contract concerning baseball game outcomes. In the subsequent days, it received additional certifications for a Baseball Outcome Event Contract and four soccer contracts related to match results, point spreads, and total goals, in anticipation of the 2026 FIFA World Cup starting June 11.
Rothera truly became a functioning market when Robinhood began directing live customer traffic to it through its consumer application. This launch enables Robinhood to control both the exchange and clearing infrastructure, allowing for a larger share of trading revenues and enhanced oversight of product development, listings, and user experience.
The initial trading volume on Rothera indicates that Robinhood is selectively routing orders. Besides baseball games, the exchange also lists contracts for Core PCE inflation and weekly initial jobless claims.
The $2.1 million processed by Rothera over the weekend is a small part of Robinhood's overall event contract activity, which saw 8.8 billion contracts traded in Q1 2026.
This limited volume flowing through Rothera mirrors Robinhood's approach to launching new infrastructure in the past. During the Bernstein 42nd Annual Strategic Decisions Conference, Robinhood's CFO Shiv Verma elaborated on the reasoning behind Rothera, highlighting that partnering with a reputable firm like Susquehanna speeds up market entry.
Verma emphasized the advantages of vertical integration, stating it allows for complete control over product engineering and improved economic outcomes. He also indicated that investors should anticipate an increase in trading volume directed to Rothera in the future while keeping the option for a fallback venue open.
Currently, Robinhood’s event contract product serves approximately 1.5 million customers, a significant rise from about 500,000 since the last disclosure in late November 2025.