FIS Adds Clearing for Prediction Market Contracts, Building on OTC Trading

Brokers and FCMs can now clear prediction market contracts through existing post-trade systems, as Kalshi partners with FIS to introduce a new clearing setup.

The tool, FIS CD Prediction Clearing, is aimed at institutional clients that want to access these products without building new clearing infrastructure. The launch comes as prediction markets scale rapidly.

According to data from Next.Io, the sector generated nearly $64 billion in trading volume last year, up from under $16 billion the year before. Monthly volumes have also surged, rising from less than $100 million in early 2024 to more than $13 billion by December 2025.

Kalshi reported $10.4 billion in trading volume last month, highlighting the scale these markets are reaching. “Having the right post-trade foundation in place is critical to unlocking the next wave of participation,” said Andy Ross, Head of Institutional at Kalshi.

The partnership is part of Kalshi’s broader effort to expand beyond retail users and make its platform more accessible to institutional participants.

How the Setup Works

The development follows recent moves to introduce OTC trading for prediction markets, allowing institutions to execute larger trades outside retail platforms.

Earlier moves in the market have focused on execution and custody. Partnerships involving firms such as BitGo and Susquehanna have introduced OTC trading models that allow institutional clients to execute trades directly from custody accounts.

The FIS product addresses the next step — clearing and post-trade processing. The service integrates prediction market contracts into standard post-trade workflows. Instead of adapting retail platforms, firms can process trades through familiar clearing and middle-office systems.

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The setup supports real-time processing and continuous availability, aligning with how these contracts trade. “Prediction markets are demanding real-time clearing, high-volume transaction processing and round-the-clock availability,” said Andrés Choussy, Head of Capital Markets at FIS.

For FIS clients, the main change is operational. Brokers can clear prediction contracts within systems they already use, rather than building separate infrastructure. This reduces the need to move assets or rely on retail interfaces.

Data and Infrastructure Expanding

The launch follows Kalshi’s recent agreement with Tradeweb to distribute prediction market data to institutional clients. More of the required infrastructure — including data distribution, execution and clearing — is now becoming available around these products.

The new clearing setup addresses one part of the problem: post-trade processing. Other constraints remain. Liquidity is uneven across contracts, particularly outside the most active markets, and the regulatory status of prediction market products continues to evolve across jurisdictions.

For brokers, this means access is improving, but participation still depends on how liquidity and regulation develop in practice.