Key facts
- An over-the-counter market for event contracts is developing.
- Institutional investors are participating in this market.
- Trades are executed bilaterally, away from public exchanges.
- Individual deals can reach up to $10 million.
- These OTC deals may reference listed event contracts.
A new over-the-counter (OTC) market for event contracts is emerging, operating in parallel to retail-focused prediction exchanges like Kalshi and Polymarket. This OTC market enables institutional investors to conduct large, bilateral trades away from public exchanges. Some of these transactions are structured to reference existing listed event contracts. Individual deals within this OTC market have been observed to be as large as $10 million, indicating significant institutional interest in this developing area of financial speculation.