Xchange brief
•Published 22 Oct 2026

Prediction markets: are event contracts now an institutional asset?

They have crossed from retail speculation into regulated financial market infrastructure: USD 63bn market grows by 300% per annum.

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Prediction markets: are event contracts now an institutional asset?

Prediction markets have crossed from retail speculation into regulated financial market infrastructure, as the USD 63 billion market grows by 300% per annum. Exchange groups, retail brokers, and quantitative market makers are now buying clearing houses and distributing event probabilities directly into institutional terminals.

Snapshot of this brief: 

  • How big is this market today?
  • How have markets and regulators reacted so far to prediction trading?
  • What are banks and financial institutions saying about these markets?
  • What should the next steps be for regulated firms?

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