CNBC reports that, as prediction markets develop rapidly, the risk of insider trading is prompting more and more companies to adjust their internal compliance policies. Insiders say Goldman Sachs has banned employees from trading prediction market contracts related to the bank itself, elections, financial markets, macroeconomic data, and geopolitics. Morgan Stanley has added relevant provisions to its employee code of conduct, and Bank of America is also updating its policies. Lawyers say more and more companies are seeking legal advice on insider trading liability related to prediction markets, after a Google employee was accused of profiting about $1.2 million by trading Polymarket contracts using non-public information.

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There'sABullMarketInTheGlass.
· 9h ago
Ultimately, it's still a problem of information asymmetry. Traditional financial markets have been regulated for so many years, but the rules for the new track of prediction markets are vague, so businesses have to take a one-size-fits-all approach to stay safe.
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ProofOfNap
· 10h ago
Goldman Sachs is being quite ruthless this time, even banning macro data. It seems they are really afraid of something going wrong.
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YieldNotYell
· 10h ago
Prediction markets have a glaring information advantage—employees hold undisclosed data, and if the loopholes aren't sealed, it's only a matter of time before things blow up.
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NfaKitchen
· 10h ago
$1.2 million... That Google guy should be updating his resume now 😂
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