Kalshi expands surveillance, enforcement efforts ahead of Super Bowl 60
CNBC: Kalshi is strengthening its surveillance and enforcement measures amid concerns over prediction market trading.
Kalshi recently announced plans to enhance its monitoring and enforcement protocols in response to growing doubts surrounding the prediction market industry. The platform, along with others in the industry, allows users to trade event contracts on various topics such as politics, pop culture, finance, and sports. With the upcoming Super Bowl 60 generating significant trading volume, Kalshi has faced scrutiny over potential insider trading. In light of these concerns, the company has emphasized its commitment to federal regulation, which includes measures to prevent market manipulation, insider trading, and money laundering. Additionally, Kalshi has established an independent surveillance advisory committee, formed partnerships with surveillance firms, and appointed a former Treasury undersecretary to advise on market integrity. The company has also created resources on its website to educate consumers on responsible trading practices. CEO Tarek Mansour reiterated Kalshi’s dedication to maintaining market integrity, with penalties for wrongdoing including fines and referrals to regulatory authorities. Kalshi’s surveillance system, inspired by those used in traditional stock exchanges, aims to identify suspicious activity through pattern recognition models. Despite acknowledging the presence of bad actors in every industry, Mansour expressed Kalshi’s ongoing commitment to enhancing its surveillance efforts.
