[ I N D E P T H ] of change.
“ We ' ve seen a very interesting development of markets over the last 10 to 15 years. Fast forward through Covid, and institutional and proprietary market makers providing liquidity into crypto and novel digital assets, we find ourselves now with a brand new emerging asset class – event-based contracts.”
This growth has also been translated into recent headlines, with several firms making their push into prediction markets. Recently, for example, Tradeweb announced a partnership with Kalshi, integrating the prediction market’ s real-time event probability data into Tradeweb’ s electronic trading platform, making the datasets available across its rates and credit marketplaces via user interfaces, APIs and data-download tools used by institutional clients.
In a similar vein, exchanges are also jumping on this bandwagon, with Cboe’ s recent Q4 earnings call revealing that the firm is planning to launch event prediction markets in Q2 2026.
With the industry appearing to ride the wave of the prediction markets boom, the question now is-‘ where do these markets add the most value?’ and‘ what challenges do they pose to those looking to trade on these platforms?’
All roads lead to the buy-side While some market participants are beginning to try their hand at prediction markets trading, drivers for the buy-side to get involved are less clear.
Explaining this, Will Mitting, founder and managing director at Acuiti, said:“ I think you are likely to see some firms enter prediction markets but limiting their activities to trading in certain sectors, however the lack
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