Jeremy Maletz

Prediction markets are evolving from niche speculative platforms into robust institutional hedging tools for managing complex, real-world risks. Jeremy Maletz, head of prediction markets at Susquehanna International Group, explains how firms use these markets to price and hedge bespoke risks, such as regulatory changes or industry-specific moratoriums, which traditional insurance products often fail to cover. By acting as a liquidity provider and market maker, Susquehanna bridges the gap between retail-driven speculation and institutional risk management. The "goat herder" trade—a contract designed to hedge against specific legislative risks—serves as a proof of concept for how these mechanisms provide financial stability for businesses. As these markets scale, they offer efficient, exchange-traded solutions for massive, currently uncovered risks like AI-related infrastructure bankruptcy or data center policy shifts, ultimately integrating into broader financial systems to improve capital efficiency.