Kalshi adds three measures to limit insider trading

Kalshi, a federally regulated prediction-market operator, put three integrity measures into effect immediately: a risk-scoring system for proposed market listings, mandatory employment verification for markets judged high-risk for insider trading or manipulation, and whistleblower reporting tools available on every market.

Every proposed market now receives a pre-listing risk score that weighs six factors: corporate KPI risk, outcome concentration, market importance, regulatory fit, non-traditional insider risk and national security risk. Markets that score above an internal threshold are flagged for closer review before they go live.

When a market is flagged for elevated insider or manipulation risk, traders must provide employment information so presumptive insiders can be identified and screened out prior to trade execution. The whistleblower upgrade adds a reporting option on each market; tips route directly to a surveillance team that monitors the trading feed around the clock.

Kalshi said its independent Surveillance Audit Committee issued an initial report ahead of the rollout and will publish quarterly updates. The company reported more than 150 investigations, over 20 referrals to law enforcement and five disciplinary actions in the first quarter. Kalshi added that its screening systems blocked more than 100 suspected insider trades during Q1.

In a statement, Robert DeNault, Kalshi’s Head of Enforcement, commented: “By implementing these new integrity measures, we continue to lead the industry on the issue of market integrity amongst federally regulated prediction markets.”

Prediction markets have drawn increased regulatory and operational scrutiny as trading volumes rise and traders place more bets on corporate and geopolitical outcomes. Rival platforms have also expanded surveillance tools. Kalshi said the next quarterly audit will indicate whether the new controls change the frequency of insider-related investigations and enforcement actions.