Wall Street banks restrict staff trading on prediction markets 
Major Wall Street banks are tightening employee rules for prediction markets as concerns grow over the use of confidential information on platforms such as Polymarket and Kalshi. 
Goldman Sachs has prohibited employees from trading prediction contracts linked to financial markets, political events and other subjects that could create a real or perceived conflict with the bank, its clients or the financial sector. The policy reportedly covers macroeconomic data, elections, geopolitics and events involving Goldman Sachs. However, employees may continue trading contracts related to sports and entertainment. Repeated violations could lead to disciplinary action or the loss of profits from prohibited trades.
Morgan Stanley has also included prediction market rules in its employee code of conduct, although the bank has not disclosed the full scope of those restrictions. Meanwhile, Bank of America recently gave employees clearer examples of banned activity. Its policy restricts contracts involving company-specific developments, macroeconomic data and financial services. JPMorgan’s existing rules prohibit staff from trading with confidential information, including through prediction markets.
