Goldman Sachs warns employees: You can only "follow stars and watch football" in the prediction market, don't touch anything else, otherwise you will lose your job
China-Singapore Jingwei, July 10. According to a report by the Financial Times on the 10th, Goldman Sachs warned employees to limit their prediction market bets to sports and entertainment categories, because bets on various subjects from elections to interest rates are bringing compliance risks to the Wall Street bank. According to reports, Goldman Sachs has informed employees of the policy in an internal memo and warned that repeated violations could cost employees their jobs, according to people familiar with the matter.
China-Singapore Jingwei, July 10. According to a report by the Financial Times on the 10th, Goldman Sachs warned employees to limit their prediction market bets to sports and entertainment categories, because bets on various subjects from elections to interest rates are bringing compliance risks to the Wall Street bank. According to reports, Goldman Sachs has informed employees of the policy in an internal memo and warned that repeated violations could cost employees their jobs, according to people familiar with the matter. The report mentioned that given that the company may be exposed to material non-public information that can affect the market, highly regulated financial institutions like Goldman Sachs have strict regulations on what transactions their employees are allowed to conduct. Emerging prediction market platforms such as Kalshi and Polymarket pose challenges to these compliance policies. Such platforms have rapidly grown into a vehicle for consumers to bet on everything from global events to the level of the S&P 500 at a given point in time. These platforms have also come under scrutiny because of the risk that someone could use prior knowledge to conduct transactions. The report mentioned that in the past year, prediction platforms have been repeatedly impacted by people using advance knowledge of future events to make profits. Organizers of the Nobel Peace Prize have launched an investigation into a potential leak. In another case, a U.S. Special Forces soldier allegedly had advance knowledge of an operation to capture the Venezuelan leader and placed bets on the event on Polymarket. In addition, in the days before the first U.S. attack on Iran this year, 12 suspicious accounts made hundreds of thousands of dollars in profits by betting on unusually large and well-timed transactions. These prediction market companies currently generate most of their revenue from sports betting, but are working to expand their business, including working with financial services companies. For example, Kalshi is building a block trading business. (