Goldman Sachs prohibits employees from participating in prediction market trading related to finance and politics

BlockBeats news. On July 10, according to Bloomberg, Goldman Sachs has banned employees from trading in prediction markets, except for sports and entertainment bets. This is one of the clear steps Wall Street institutions have taken to address new regulatory issues brought about by the event-betting frenzy.

Goldman Sachs has recently updated its personal trading policy, prohibiting employees from trading event contracts related to specific companies, including Goldman Sachs itself, as well as contracts related to election results, any financial market performance, and other related matters. If employees violate the policy multiple times, it may lead to termination or the closure of their accounts; in cases of improper trading, Goldman Sachs may also require employees to turn over profits exceeding $200, or donate them to a charity.

Goldman Sachs’ policy clearly prohibits employees from participating in event contracts related to company restructuring, mergers and acquisitions, ceasefire dates, Bitcoin prices, and the results of M&A regulatory approvals; however, contracts like “whether a certain team will win a championship” are still allowed. By contrast, JPMorgan previously only asked employees to “consider carefully” before participating in prediction markets related to the financial field, while hedge funds such as Point72 and Balyasny have already completely banned employees from using prediction markets through personal accounts.