Jump Trading, the proprietary trading firm founded by former Chicago Mercantile Exchange pit traders, is set to acquire minority stakes in prediction-market platforms Kalshi and Polymarket, according to a Bloomberg report citing anonymous sources. The investments are structured around Jump’s provision of liquidity in exchange for equity, resembling venture-style deals in the event-contract space.
Deal Structure: Fixed vs. Variable Equity
Jump’s agreement with Kalshi involves a fixed equity stake linked to its liquidity commitments, while its stake in Polymarket will increase over time based on the trading capacity Jump contributes. Currently, Kalshi is valued at $11 billion and Polymarket at $9 billion, underscoring the rapid growth of regulated prediction markets in the United States.
Growing Institutional Interest in Event Contracts
Jump’s move follows Susquehanna International Group (SIG) disclosing in 2024 that it had become a market maker for Kalshi, making it one of the first major trading firms to publicly embrace prediction markets. In 2025, SIG and retail brokerage Robinhood Markets acquired a majority stake in LedgerX, gaining control over derivatives infrastructure for event contracts. Jump’s entry further cements prediction markets as a legitimate asset class for institutional players.
The firm has been diversifying beyond equities and cryptocurrency, building technology and staffing more than 20 traders to support Commodity Futures Trading Commission (CFTC)-regulated event contracts. Jump Trading, founded in 1999, is a significant player across asset classes including U.S. Treasury securities, futures, and digital assets.
Conflict-of-Interest and Regulatory Concerns
Jump’s dual role as both liquidity provider and shareholder has drawn criticism. Opponents argue that market decisions could be tilted toward benefiting Jump’s equity position rather than overall market fairness. Its use of advanced AI-driven trading models may also create an uneven playing field for retail participants.
Regulators are likely to scrutinize whether such equity-linked liquidity deals compromise market integrity, particularly in politically sensitive contracts. Smaller market makers could face disadvantages if liquidity provision becomes concentrated among a few large firms with ownership stakes.
Industry Outlook
Jump Trading joins Susquehanna as one of the few major trading firms with direct stakes in prediction markets. With valuations soaring and event-based contracts gaining mainstream traction, these partnerships could accelerate adoption. However, regulators and market participants will closely monitor the balance between liquidity provision and ownership influence to safeguard transparency and fairness in this rapidly evolving sector.