Why Susquehanna Is Building a Prediction Markets Business

Prediction markets are evolving from retail-focused sports betting platforms into viable tools for institutional economic hedging. Jeremy Maletz, head of prediction markets at Susquehanna International Group, explains that his firm acts as a liquidity provider to bridge the gap between disparate traders and bootstrap institutional participation. While current volume remains concentrated in sports, these platforms offer efficient price discovery for complex real-world risks, such as regulatory changes or environmental events. By providing consistent liquidity, market makers enable corporations to hedge specific economic exposures that traditional financial instruments cannot address. Although concerns regarding insider trading and market manipulation persist, the regulated nature of these exchanges and the transparency of data help mitigate these risks, positioning prediction markets as a robust mechanism for processing information and managing risk in an increasingly complex global economy.