Overview
- Citadel Securities’ president said the firm may enter prediction platforms like Kalshi and Polymarket to provide liquidity for event-based contracts.
- He said the firm is not pursuing sports bets and would focus on contracts tied to geopolitical and macroeconomic risks.
- He called the coming U.S. midterm elections a “seismic” portfolio risk that could drive demand for hedging with prediction contracts.
- He noted Citadel already handles retail orders from Schwab and Robinhood, and growing retail use of predictions could draw the firm in.
- Regulators at the CFTC are asserting oversight of these markets, and analysts report rapid volume growth that could encourage more institutional participation.