00:00There was an incident in the sports betting space which is entirely differently regulated. Right. Those are regulated on a state by state basis. And I think they're obviously working hard to address these issues. But what I tell you is financial markets have had the infrastructure in terms of surveillance and monitoring to deal with these types of concerns.
00:27And they've been dealing with it for decades because obviously insider trading originated as a market integrity measure for the equities market. You know we want to make sure we have protections as an industry to make sure corporate insiders and other folks weren't using their privileged information about what a company was going to release to trade ahead of that disclosure being available publicly.
00:51So this has pretty much always been a financial markets thing. And so I think financial markets have the best tools to to deal with it.
01:02Vlad I'm wondering about prediction markets and specifically Robinhood and others too if they offer enough protections to consumers against addictive betting. How do you solve for that at Robinhood?
01:14I mean I think our philosophy is if you look at prediction markets there's a tremendous amount of value in the diversity and variety of contracts.
01:27And what we're actually seeing similar to trading a lot of people that actually have strategies. So it's not you know it's it's not as much of like I'm buying a team because I'm a fan of it but there's systematic trading and people are analyzing these things and they have strategies around it.
01:47And it goes beyond sports. You guys were mentioning the Warner Brothers merger situation. If you notice the question on everyone's mind is what's likely going to happen to Warner Brothers.
02:04Who's going to acquire the company. Is it going to be Netflix or Paramount Skydance or neither of the above. And right now we look at the stock prices right.
02:15And we try to reverse engineer what's happening with the situation. Well there's a prediction market that we illustrated on the platform and you can see last night it was showing 55 percent chance Paramount would would actually be the ultimate acquirer this morning.
02:31It went to 75 percent Netflix. So even in terms of what value they provide to the news.
02:38It can be incredibly powerful and more direct to zero in on the results of that specific outcome.
02:45And now I'm not saying everyone should be trading prediction markets like any derivatives market. I think people have to make sure it's it's right for them.
02:55But I think they're they're resonating quite strongly with our active traders. And also I think they're a great way for other folks who may be interested in trading to learn about the new asset class.
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