Major Wall Street banks are successively restricting employee trading in prediction markets. Cointelegraph reported on July 10 that Goldman Sachs, Morgan Stanley and Bank of America strengthened internal rules in response to concerns that employees could use non-public information learned on the job to trade event contracts on Polymarket and Kalshi.
Goldman Sachs is known to have barred employees from trading event contracts related to the firm. The scope includes financial markets, macroeconomic events, elections and geopolitical issues. Morgan Stanley has an internal policy on employee prediction market trading. Bank of America is also preparing new steps to ban employee prediction market trading.
Concerns over insider trading around prediction markets have also spread into U.S. politics. Wisconsin Representative Bryan Steil introduced a bill on June 18 to prevent some public officials from betting on public policy issues and political outcomes. The bill did not separately mention White House officials.
Chi-gyu Hwang
delight@d-today.co.kr