NEXTPredict pays $12,000 premium to hedge flight cancellation risk for $3 million conference investment

Odaily News: Prediction market conference NEXTPredict has paid a $12,000 premium to hedge approximately $3 million in conference investment through prediction market platform Kalshi. If the cancellation rate of flights to New York's John F. Kennedy International Airport on October 21 exceeds 50%, the related contract will pay out approximately $3 million.

The trade is market-made by financial institution Susquehanna, with the settlement date falling on the main travel day before NEXTPredict's summit at Convene in Hudson Yards, New York, on October 22-23. Pierre Lindh stated that this is the first time the events industry has hedged a conference through prediction markets.

Kalshi self-certified the flight cancellation contract with the U.S. Commodity Futures Trading Commission (CFTC) on July 14 and customized the market for institutional clients; retail investors cannot participate. Flight disruptions caused by specific reasons such as drone incidents or bomb threats do not trigger payouts. (Decrypt)