Jeremy Maletz | Money Stuff: The Podcast

Prediction markets are evolving from niche sports betting platforms into sophisticated tools for institutional risk management. Jeremy Maletz, head of prediction markets at Susquehanna International Group, details how his firm utilizes these markets to provide bespoke hedges for corporate clients facing specific, non-traditional risks, such as potential data center moratoriums or regulatory changes. Unlike standard insurance, which relies on historical data, these prediction-based contracts allow firms to price and hedge emerging, idiosyncratic risks. While current volume remains dominated by sports, the long-term viability of the sector depends on scaling institutional hedging, where firms can offload significant exposure to entities like hyperscalers or AI labs. By bootstrapping liquidity and acting as a market-making cog, firms like Susquehanna bridge the gap between speculative betting and essential financial infrastructure for managing large-scale, real-world economic uncertainty.