Why Susquehanna Is Building a Prediction Market Business | Odd Lots

Prediction markets are evolving from retail-focused sports betting into viable institutional hedging instruments. Jeremy Maletz, head of prediction markets at Susquehanna International Group, explains that his firm acts as a primary liquidity provider to bridge the gap between retail and institutional participants. By providing consistent liquidity, market makers facilitate price discovery for complex economic risks, such as weather patterns or geopolitical events, which corporations can use to hedge exposure. While institutional adoption remains in early stages due to compliance and awareness constraints, the speed and efficiency of these platforms offer distinct advantages over traditional futures markets. The transition toward regulated exchanges enhances transparency and mitigates risks like insider trading, positioning prediction markets as a robust mechanism for aggregating information and managing real-world economic uncertainty.