From individual to institutional financial tools, driven by the demand for precise macro hedging and clearly defined binary outcomes. A report issued by Bernstein on May 4 highlights how specially designed contracts and large trading deals help bridge the gap between speculation-driven volatility and the risk management needs of institutions.

The report points to a notable achievement: the first large-scale institutional trading deal specifically designed was executed last week. Greenlight Commodities arranged this privately negotiated deal with Jump Trading as the liquidity provider, focusing on the settlement price for the California carbon allowance auction in May. This example illustrates how prediction markets can be tailored to meet specific client needs and their risk tolerance levels, beyond traditional event contracts that are defined as yes or no.