Major U.S. Banks Tighten Prediction Market Trading Rules for Employees Amid Insider Trading Concerns

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According to CNBC, Goldman Sachs has banned employees from trading prediction market contracts related to the bank's own events, elections, financial markets, macroeconomic data, and geopolitics. Morgan Stanley, JPMorgan Chase, and Bank of America are implementing or updating similar policies in response to insider trading risks. The policy tightening follows charges by the CFTC and Department of Justice against a Google employee who allegedly profited approximately $1.2 million by trading "annual search" contracts on Polymarket using non-public information. Prediction market platforms Kalshi and Polymarket have launched employment verification tools and partnered with Chainalysis and Palantir to monitor suspicious activity.
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