Prediction market operator Kalshi is launching a pre-trade screening system to block potential insiders from accessing sensitive contracts. Starting now, the platform will collect employment information from traders before allowing participation in markets deemed vulnerable to insider trading or manipulation. The new policy targets contracts where participants may possess material non-public information, such as hypothetical markets on whether OpenAI or Anthropic goes public first.
Kalshi will use risk-scoring to flag markets requiring additional controls, evaluating factors including corporate performance metrics, product launches, and national security implications. The screening aims to identify “presumptive insiders” before trades execute rather than investigating after suspicious activity occurs. Head of Enforcement Robert DeNault confirmed employment disclosures are part of a broader integrity initiative recommended by an independent Surveillance Audit Committee, which also includes a new whistleblower portal and expanded reporting tools for suspicious activity.
**
FXnCO Insight
** Traders should expect increased compliance friction and potential access restrictions across prediction markets as platforms prioritize regulatory defensibility amid growing institutional and retail adoption.
Source: Finance Magnates