Hudson River Trading starts trading on Kalshi's prediction markets

HRT steps into prediction markets

Hudson River Trading, one of Wall Street's largest market makers, has started transacting on Kalshi, according to people who asked not to be identified because the details are private.

HRT is joining fellow non-bank market makers, including Jump Trading and Susquehanna International Group, both of which have assembled teams focused on these newer derivatives. The group's presence adds more institutional muscle to a venue that has been gathering momentum.

What HRT is trading on Kalshi

Two people said the effort sits within HRT's futures team and includes activity in Kalshi's up-down markets, with payouts determined by short-term moves up or down in the underlying. They also said HRT is steering clear of sports and other nonfinancial event markets.

Separately, HRT participated as an investor in Kalshi's most recent financing, a $1 billion round that valued the platform at $40 billion.

Savvy investors increasingly seek fresh tools to sharpen their decision making with AI. We're hosting our first ever investor livestream on 11/17 to show you how to use ChatGPT and Claude to invest like a pro, hosted by Briefs Finance CEO Jaspreet Singh. Save your seat.

Why Kalshi is scaling

The duo of Kalshi and its chief competitor, Polymarket, has expanded rapidly by transforming bets traditionally handled by bookmakers into regulated financial products. While sports betting has pushed volumes to fresh highs, Kalshi also lists contracts tied to markets, letting firms like HRT lean on familiar playbooks.

Bloomberg's analysis of Dune trading data pegs Kalshi's September notional volume at $60 billion. After years of being too small for Wall Street, a recent boom in activity - along with new contracts tied to equities and other financial assets - has attracted greater interest from institutions.

The bottom line for your portfolio

Founded in 2002, HRT leverages proprietary technology and quantitative methods to connect buyers and sellers across regions and asset classes, and it has advanced up the proprietary trading ranks through extensive use of machine learning. In the second quarter, it posted trading revenue of a record $11.4 billion.

For investors, the signal is that large, sophisticated trading firms are moving into prediction venues, particularly those with markets-linked contracts. If that trend continues, liquidity and pricing on these platforms could start to resemble traditional derivatives, shaping how views get expressed and risks get managed in your portfolio.

Learning how AI can augment your research can quietly improve investment outcomes over time. On 11/17, our CEO Jaspreet Singh goes live for our first ever investor livestream on how to use ChatGPT and Claude to invest like a pro. Register to join him.