Prediction market Kalshi launched 3 market integrity measures: risk scoring for new listings, employment verification for markets with manipulation risk, and enhanced whistleblower reporting tools across the platform.
The measures take effect immediately and follow the first report from Kalshi’s independent Surveillance Audit Committee.
How Kalshi’s New Measures Work
According to the announcement, every proposed market now receives a risk score before listing. The system weighs six factors. These include corporate KPI risk, outcome concentration, market importance, regulatory fit, non-traditional insider risk, and national security risk.
Markets with high insider or manipulation risk now require traders to provide employment information. This lets Kalshi identify presumptive insiders and screen them out before any trade executes.
Finally, the whistleblower upgrade adds reporting tools to every market on the exchange. Tips route directly to a surveillance team that monitors the feed around the clock.
“By implementing these new integrity measures, we continue to lead the industry on the issue of market integrity amongst federally regulated prediction markets,” Kalshi Head of Enforcement Robert DeNault said.
The prediction market platform also revealed that the enforcement record in Q1 included 150+ investigations, 20+ referrals to law enforcement, and 5 disciplinary actions. Kalshi said that its screening tools blocked more than 100 potential insider trades in the first quarter.
The Surveillance Audit Committee will deliver quarterly reports going forward. Its next review may show whether these measures curb insider trading on Kalshi.
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Why Prediction Markets Face Insider Trading Pressure
Insider trading has become a key integrity problem for prediction markets as trading volumes grow. Rival platform Polymarket partnered with Chainalysis to monitor trading activity.
Suspicious activity has surfaced, particularly in geopolitical markets. Both major platforms have since tightened their rules, and Kalshi’s update marks the latest effort to win back trader confidence.
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