Sources: Wall Street banks set rules for employees to participate in prediction market betting
Major Wall Street banks have added provisions on prediction market betting to their employee codes of conduct, with some prohibiting employees from betting on contracts related to financial markets and political events, according to three people familiar with the matter. An insider said, In a recent memo, it said its policy prohibits employees from participating in event-based contracts related to financial markets and political events that could create actual or potential conflicts of interest with the bank, its clients or the broader financial industry. Prediction market platforms are trading platforms that offer contracts related to a wide range of events such as elections, sports and weather, similar to the gambling products traditionally offered by betting platforms. Platforms such as Kalshi and Polymarket have grown rapidly in recent years, raising concerns about regulatory oversight ahead of the U.S. midterm elections. Media outlets that first reported the policy said repeated violations could result in disciplinary action, including dismissal, and employees could be required to turn over proceeds from illegal transactions. The restrictions do not apply to prediction market betting related to sports and entertainment, the source said. , a person familiar with the matter said that the bank’s employee code of conduct contains provisions on prediction market betting, as well as other trading and investment-related content.