Why Regulators Are Scrutinizing Prediction Markets' Trading Arms
Fast-growing prediction markets like Kalshi and Polymarket are well known for their consumer apps, where people can bet on everything from sports and elections to the weather and stock prices. But those companies do more than operate consumer apps. Behind the scenes, several prediction markets operate their own exchanges and clearinghouses for the contracts, and some even have trading firms that make bets using the same contracts that are available to customers. Those kinds of setups...