Goldman and other firms tighten rules on prediction market trading

Goldman Sachs and other companies are beginning to update employee rules as prediction markets face growing scrutiny over insider trading risks. According to people familiar with the matter, Goldman has barred employees from trading contracts tied to bankspecific events, elections, financial markets, macroeconomic data, and geopolitics. The bank says it already prohibits trading with material nonpublic information across all markets. The article says legal experts see prediction markets as a new area of risk because employees may be able to use confidential information to trade on event contracts. That concern intensified after U.S. regulators charged a Google employee in a case tied to Polymarket contracts. CNBC contacted 50 public and private companies with exposure to prediction market contracts and found only a few had explicit policies in place, while others were still reviewing their approach. Some firms, including JPMorgan, Morgan Stanley, and Bank of America, have either issued guidance or are updating internal policies. Prediction market platforms such as Kalshi and Polymarket have also added compliance tools and monitoring partnerships, but lawyers say companies still need their own training, controls, and clear employee rules as the market grows.