Prediction markets are in the spotlight of institutional investors. To cater to this demand, new data products are springing up from both incumbent data providers and smaller start-ups. In this piece, we discuss the types of data available on the market and which data providers are actually gaining traction with funds.

In many ways, the prediction markets covering Ayatollah Khamenei provided an illustrative picture of the industry as a whole. Morally dubious – probably; directionally accurate – seemingly so; a tool to hedge real risk – not yet. From a data perspective, though, there has been significant interest in prediction markets among Neudata’s client base. In this piece, we address five main questions that funds are asking us about the space: 

1. Sources of contract pricing and notional flow data from prediction markets
2. Use case: Macroeconomic forecasting
3. Use case: Trading on prediction markets
4. Use case: Shorting online sports books
5. Regulatory considerations