Event Bets Pose a Problem for Wall Street Firms Looking to Trade
Lionel Messi holds the FIFA World Cup Trophy as he celebrates alongside teammates after winning the Qatar 2022 World Cup tournament in Ezeiza, Buenos Aires province, Argentina 2022.
Photographer: Tomas Cuesta/AFP/Getty Images
Prediction markets are booming. Wagers on everything from the return of Jesus Christ to who will win the World Cup have driven weekly volumes on platforms like Polymarket and Kalshi into the billions of dollars.
Even as some Wall Street players have taken the first steps into this sort of event betting, many big trading firms, including Citadel Securities, IMC Trading and Hudson River Trading have stayed away so far.