Why Susquehanna Is Building a Prediction Markets Business
About this episode
The episode discusses Susquehanna's efforts in building a prediction markets business and the potential for institutional investors to engage with these markets.
Prediction markets that enable you to bet on pretty much everything are everywhere nowadays. But there's still a big question over whether they can expand to include larger institutional investors like hedge funds. Part of the problem is that a lot of prediction market contracts are illiquid and trading volumes can sometimes be shallow. That's where trading firm Susquehanna International Group comes in. In this episode, recorded live at New York's City Winery, we talk to Jeremy Maletz, Susquehanna's head of macro trading and prediction markets, about the firm's market-making business with Kalshi. We talk about how big investors could use prediction markets, what Susquehanna is seeing in terms of flows, how a market-maker hedges risk on these contracts, and how it makes money from them. See omnystudio.com/listener for privacy information.
People in this episode
Guest: Jeremy Maletz
Topics covered
- prediction markets
- institutional investors
- hedge funds
- market-making
- trading
- risk management
Keywords
- prediction markets
- Susquehanna
- Kalshi
- hedge funds
- market-making
- trading volumes
- risk hedging
Mentioned in this episode
Organizations: Susquehanna International Group, Kalshi
Places: New York, City Winery
More episodes of Odd Lots
- How a Vibecoded Newsletter Is Making the Hay Market More Transparent
- Why Tomatoes Are the Most Expensive They've Been in Four Decades
- How CoreWeave Sees the Market for Compute Right Now
- Inside Hudson River Trading's Blistering Token Burn
- Goldman Sachs CEO David Solomon on Running a Bank in the Age of AI
- The Hidden Plumbing of Commodity Finance
Explore listener stats, chart rankings, contacts and more on the Odd Lots podcast page.