(Bloomberg) -- Susquehanna International Group is starting a trading desk focused on so-called events contracts as part of a fresh push to attract Wall Street investors who want to bet on everything from monetary policy swings to Taylor Swift’s album performance. 

The firm plans to act as a market maker for transactions on Kalshi Inc., which has recently raised its trading limits to attract hedge funds and other large investors. On Kalshi, people can use binary options to bet on everything from the number of interest rate cuts by the Federal Reserve to whether Bitcoin will hit $100,000 in 2024.  

“Kalshi is uniquely positioned to bring this next generation asset class to the next phase and we are thrilled to be an early player on this journey to provide greater choice and opportunity to investors,” Susquehanna’s head of strategic planning, David Pollard, said in an emailed statement. 

Susquehanna’s billionaire co-founder, Jeffrey Yass, has emerged as a major political donor ahead November’s US elections and has been mentioned as a possible candidate for Treasury secretary should Donald Trump win.

Tarek Mansour, chief executive officer and co-founder of Kalshi, said in an interview that Susquehanna’s trading activity will significantly deepen liquidity on his firm’s platform. “With this launch, this type of commitment, it feels like we finally have broken the chicken-and-egg problem of the marketplace,” he said. 

Many of Kalshi’s contracts remain capped at $25,000 and appear to target ordinary investors with topics like Taylor Swift’s likelihood of landing Spotify’s 2024 top artist slot. Still, Kalshi has been seeking to attract institutional traders by recently raising position limits on some contracts to $7 million.

Although the firm enjoys a first-mover advantage as a registered exchange with the Commodity Futures Trading Commission, several exchanges are also seeking a green light from the regulator. IMX Health won CFTC approval in January to offer trading in healthcare-focused derivatives contracts, but hasn’t launched yet. Some of those platforms will be targeting industrial or sophisticated traders, rather than retail markets.

Kalshi is challenging the CFTC in court over its decision last year to turn down the exchange’s bid to offer bets on US congressional elections. CFTC Chairman Rostin Behnam has said he’s concerned that the plan could thrust the agency into the business of policing elections.  

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