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Wall Street banks tighten restrictions on employees' market prediction trading to guard against insider trading risks.

2026-07-10 12:04:07
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According to BlockBeats, on July 10, as concerns about insider trading in prediction markets intensified, several Wall Street investment banks are tightening their employees' trading permissions on prediction market platforms.


The report states that Goldman Sachs has banned employees from trading contracts related to events involving the bank, financial markets, macroeconomics, elections, and geopolitics; Morgan Stanley has also developed a policy for employees to trade market predictions; and Bank of America is introducing new restrictions on employee trading.

Previously, the U.S. Department of Justice and the U.S. Commodity Futures Trading Commission (CFTC) disclosed that a Google software engineer profited approximately $1.2 million on Polymarket by using non-public information obtained during his work, further exacerbating market concerns about insider trading.



Meanwhile, Polymarket is seeking to expand its U.S. operations. Its affiliate, Coming Home GBA LLC, has applied to the National Futures Association (NFA) to become a Futures Commission Merchant (FCM), planning to offer margin prediction trading services to U.S. users in the future. However, this business still requires CFTC approval. A competitor, Kalshi, obtained the necessary certification through an affiliate in March of this year.



Data shows that Polymarket set a record for single-day trading volume of $713 million on June 20; Kalshi's monthly trading volume in June also reached nearly $9.4 billion, driven by the 2026 World Cup, and the trading activity in the prediction market continues to rise.

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