CQG to Provide Order Routing Infrastructure for all Robinhood Futures Trades

Rhea-AI Summary

Robinhood (NASDAQ: HOOD) and CQG have announced a partnership where CQG will provide order routing infrastructure for all Robinhood Derivatives' futures customer orders. Robinhood, with 25.5 million funded customers and $204 billion in assets under custody as of January 31, 2025, will utilize CQG's professional-grade infrastructure and API for futures trading and non-U.S. orders for equities and equity options.

Through this integration, eligible U.S. Robinhood customers can access CME Group's popular futures products across five major asset classes, including:

• Four leading U.S. equity indices (S&P 500, Nasdaq-100, Russell 2000, Dow Jones)
• Cryptocurrency futures (Bitcoin and Ether)
• Major FX currency pairs
• Key metals
• Commodities including crude oil and natural gas

Positive

• Expansion into futures trading market through professional-grade infrastructure
• Large customer base of 25.5M funded accounts
• Significant AUM of $204B under custody
• Diversification of trading offerings across multiple asset classes

Negative

• None.

Insights

Financial Technology Analyst

The partnership between Robinhood and CQG represents a significant infrastructure enhancement that strengthens Robinhood's competitive positioning in the derivatives market. By implementing CQG's professional-grade order routing infrastructure for all futures trades, Robinhood gains access to technology trusted by major financial institutions and professional traders - potentially narrowing the technological gap between retail and institutional trading capabilities.

This integration extends beyond just futures to include non-U.S. orders for equities and options, suggesting a strategic enhancement of Robinhood's international expansion capabilities. With Robinhood's substantial user base of 25.5 million funded customers and $204 billion in assets under custody, even incremental improvements in trading infrastructure could translate to meaningful business impact.

CQG's 45-year industry experience provides Robinhood with established connectivity to global trading venues, potentially improving execution quality and reducing latency - critical factors for derivatives trading where milliseconds matter. The implementation appears focused on backend improvements rather than user interface changes, as evidenced by Mackenzie's comment about the transition being "seamless to our customers."

This partnership aligns with Robinhood's broader strategy to diversify beyond equity trading by strengthening its futures offering across five major asset classes. For a company that revolutionized retail equity trading, establishing robust infrastructure for derivatives represents a logical evolution toward becoming a comprehensive multi-asset trading platform.

DENVER and MENLO PARK, Calif., March 6, 2025 /PRNewswire/ -- CQG, a leading global provider of high-performance technology solutions for market makers, traders, brokers, commercial hedgers and exchanges, and Robinhood Derivatives LLC ("Robinhood") (NASDAQ: HOOD), announced today that they have partnered to use CQG's professional-grade infrastructure to handle order routing for Robinhood Derivatives' futures customer orders.

As of January 31, 2025, Robinhood has 25.5 million funded customers and assets under custody of $204 billion. CQG provides a broad range of technology solutions for financial market participants of all sizes, including many of the largest financial institutions, retail futures brokerage firms, hedge funds and active professional traders, as well as numerous exchanges.

CQG CEO Ryan Moroney said: "There is phenomenal, growing interest by retail investors in futures and options, and we're delighted to play a role in meeting that need. CQG has been a pioneer in offering robust technology and connectivity for the futures industry for 45 years, and we've recently expanded into multiple asset classes. We're honored that Robinhood, which has invested considerable resources and ingenuity into its popular, user-friendly mobile app, chose our technology to provide the 'pipes' for its critical ability to route orders rapidly and successfully to trading venues across the globe."

JB Mackenzie, Vice President and General Manager of Futures and International at Robinhood, said: "Implementing CQG will be seamless to our customers while providing a robust backbone to their trading experience. I've personally used and deployed CQG technology and know firsthand the firm's commitment to excellence, resilience and stability. We look forward to this partnership as we further strengthen our rapidly growing business."

All eligible Robinhood customers in the U.S. now have access to a selection of CME Group's most popular futures products across five major asset classes, including the four leading U.S. equity indices – S&P 500, Nasdaq-100, Russell 2000 and Dow Jones Industrial Average – as well as bitcoin and ether, major foreign exchange (FX) currency pairs, key metals and additional commodities including crude oil and natural gas.

Robinhood will use CQG's application programming interface (API) for the firm's order routing network on all futures and the non-U.S. orders for equities and equity options.

About CQG

CQG provides the industry's highest performing solutions for traders, brokers, commercial hedgers and exchanges for their market-related activities globally, including trading, market data, advanced technical analysis, risk management, and account administration. The firm partners with the vast majority of futures brokerage and clearing firms and provides Direct Market Access (DMA) to more than 45 exchanges through its global network of co-located Hosted Exchange Gateways. CQG technology serves as the front end for a variety of exchanges and is increasingly employed as the over-the-counter matching engine for important new markets. CQG's server-side order management tools for spreading, market aggregation, and smart orders are unsurpassed for speed and ease of use. Its market data feed consolidates 85 sources, including exchanges worldwide for futures, options, fixed income, foreign exchange, and equities, as well as data on debt securities, industry reports, and financial indices. One of the longest-serving technology solutions providers in the industry, CQG has won numerous awards for its trading software, technical analysis and multi-asset trading platform. CQG is headquartered in Denver, with sales and support offices and data centers in key markets globally, providing services in more than 60 countries. For more information, visit www.cqg.com.

About Robinhood

Robinhood Markets, Inc. (NASDAQ: HOOD) transformed financial services by introducing commission-free stock trading and democratizing access to the markets for millions of investors. Today, Robinhood lets you trade stocks, options, commodity interests, and crypto, invest for retirement, and earn with Robinhood Gold. Headquartered in Menlo Park, California, Robinhood puts customers in the driver's seat, delivering unprecedented value and products intentionally designed for a new generation of investors. Additional information about Robinhood can be found at www.robinhood.com.

Robinhood uses the "Overview" tab of its Investor Relations website (accessible at investors.robinhood.com/overview) and its Newsroom (accessible at newsroom.aboutrobinhood.com), as means of disclosing information to the public in a broad, non-exclusionary manner for purposes of the U.S. Securities and Exchange Commission's ("SEC") Regulation Fair Disclosure (Reg. FD). Investors should routinely monitor those web pages, in addition to Robinhood's press releases, SEC filings, and public conference calls and webcasts, as information posted on them could be deemed to be material information.

"Robinhood" and the Robinhood feather logo are registered trademarks of Robinhood Markets, Inc. All other names are trademarks and/or registered trademarks of their respective owners.

 

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SOURCE CQG

FAQ

What futures products are available to Robinhood (HOOD) customers through the CQG partnership?

Robinhood customers can trade CME Group futures across five asset classes: U.S. equity indices, crypto (Bitcoin/Ether), FX pairs, metals, and commodities like oil and gas.

How many funded customers does Robinhood (HOOD) have as of January 2025?

As of January 31, 2025, Robinhood has 25.5 million funded customers with $204 billion in assets under custody.

What will CQG provide for Robinhood's (HOOD) trading infrastructure?

CQG will provide order routing infrastructure for all Robinhood Derivatives' futures customer orders and handle non-U.S. orders for equities and equity options through their API.

How will the CQG integration affect Robinhood (HOOD) customers' trading experience?

The CQG implementation will be seamless to customers while providing a robust backbone to their trading experience, enabling rapid order routing to global trading venues.