Will Kalshi and Polymarket win over prop shops? Don’t bet on it.
A few market-makers – Jump Trading and Susquehanna among them – are dabbling in prediction markets but most are holding off due to patchy liquidity and legal uncertainty
Trading in financial markets relies on predictions: whether an asset price will rise or fall, how rates will change, whether volatility has peaked.
But when it comes to prediction markets, institutions are wary. Not only are there various legal, regulatory and operational hurdles, but some believe trade volumes aren’t high enough for firms to apply the same market-making models they use in the
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