Citadel Securities Looks at Prediction Markets as Trading Scales

Ken Griffin’s market-making giant Citadel Securities is monitoring the fast-moving prediction-markets industry as it evaluates when to enter one of the hottest new derivatives spaces.

Citadel Securities isn’t involved in trading event contracts currently, but the firm is “absolutely, keeping an eye on developments in the market,” President Jim Esposito said Thursday at the Semafor World Economy conference.

Jim Esposito

Photographer: Eva Marie Uzcategui/Bloomberg

The entry of players such as Citadel Securities would indicate that prediction markets are gaining greater traction in the finance industry even as legal uncertainties around the business linger and institutional investors stay mostly on the sidelines. Susquehanna International Group ...