The system is meant to ‘prevent insider trading and manipulation,’ according to Kalshi.
The system is meant to ‘prevent insider trading and manipulation,’ according to Kalshi.
The prediction market platform Kalshi says it’s rolling out new guardrails to “preemptively block” political candidates and athletes from trading in their own markets, as reported earlier by Axios. In addition to blocking political candidates from trading on their own campaigns, Kalshi says its system will also prevent professional and college sports athletes, referees, and personnel from trading in sports they’re involved in:
The guardrails we built use state-of-the-art technology and screening lists, but no screening system is perfect, and motivated bad actors consistently try to find a way. To that end, we are also adding a whistleblower functionality straight in our market page, which makes it easier for our community to flag potential violations as they go through our public trading data.
Kalshi says the move will “proactively address the CFTC’s [Commodity Futures Trading Commission] guidance and Congressional bill proposals to prevent insider trading.”
