Kalshi is getting more personal with its users in a bid to curb insider trading. The CFTC-regulated prediction market plans to make some traders disclose where they work before they can wager on events tied to sensitive, nonpublic information, like corporate performance or national security topics. The policy, based on recommendations from an outside audit committee, is expected to go live in the coming weeks, reports the Wall Street Journal.
The AP explains the nuts and bolts: New markets will be given a score indicative of the degree to which Kalshi consider it at risk of insider trading or market manipulation. Scores above a certain threshold will require employer info from anyone who wants to bet on that market. Anyone Kalshi determines to be a “presumptive insider” will be blocked from that particular market. Kalshi says it won’t routinely verify the employer information provided but will do so if trading looks suspicious.
