[ I N D E P T H ]
Similar sentiment was also echoed by Mitting, who indicated that some proprietary trading firms are attracted to these markets due to the opportunity to trade significant retail flow, which may prove difficult in currently crowded markets.
He also added that this proprietary trading traction may be fuelling interest from other sectors of the industry.
“ Our research has found that prop firms are the furthest ahead with regards to adoption of prediction markets. Prop firms tend to be early adopters of new markets as they can move quickly and test new ideas. The interest from prop firms is moving some sell-side firms that serve that market to explore offering access to prediction markets but that is at a nascent stage today.”
For Bob Fitzsimmons, executive vice president,
“ We’ re really seeing a democratisation of the financial space. Essentially, we’ re building a liquidity pool of speculators, though within a framework of limited risk.”
BOB FITZSIMMONS, EXECUTIVE VP,
CO-HEAD OF MULTI-ASSET CLEARING AND PRIME SERVICES, WEDBUSH SECURITIES
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