Wall Street banks rule on staff betting on prediction markets, sources say
In a significant move, major Wall Street banks have revised their employee conduct guidelines. The updated policies impose restrictions on engaging in financial and political prediction markets. Specifically, Goldman Sachs and Morgan Stanley have ...
By Reuters |
Wall Street banks have added rules onprediction-market betting to their employee codes of conduct, with some barring employees from bets on contracts linked to financial markets and political events, according to three sources familiar with the matter.
Goldman Sachs said in a recent memo that its policy prohibits staff from participating in event-based contracts linked to financial markets and political events that could create real or perceived conflicts of interest with the bank, its clients or the broader financial industry, a source with knowledge of the matter said.
Prediction-market platforms are exchanges that offer contracts related to a wide array of events like elections, sports and weather, similar to gambling products traditionally offered by betting platforms. Platforms such as Kalshi and Polymarket have grown rapidly in recent years, raising concerns about regulatory oversight ahead of the U.S. midterm elections.
Bloomberg News, which first reported the policy, said repeated violations could result in disciplinary action, including termination, and that employees may be required to forfeit gains from prohibited trades. The restrictions do not apply to prediction-market betting related to sports and entertainment, the source said. For Morgan Stanley, a person familiar with the matter said the bank's employee code of conduct includes rules for prediction-market betting, among other trading and investing topics.
The person declined to specify the policies. JPMorgan Chase also has a similar policy in its code of conduct that prohibits employees from trading on any non-public, confidential information, which also extends to betting on prediction markets, a bank source said.
Bank of America restricts employees from trading in certain event or prediction-market contracts including company-specific, macroeconomic and financial services events, according to a source with knowledge of the matter. A BofA spokesperson confirmed that the bank recently provided updates to more explicitly outline prohibited activities for employees and to offer examples. Citigroup declined to comment.
Goldman Sachs said in a recent memo that its policy prohibits staff from participating in event-based contracts linked to financial markets and political events that could create real or perceived conflicts of interest with the bank, its clients or the broader financial industry, a source with knowledge of the matter said.
Prediction-market platforms are exchanges that offer contracts related to a wide array of events like elections, sports and weather, similar to gambling products traditionally offered by betting platforms. Platforms such as Kalshi and Polymarket have grown rapidly in recent years, raising concerns about regulatory oversight ahead of the U.S. midterm elections.
Bloomberg News, which first reported the policy, said repeated violations could result in disciplinary action, including termination, and that employees may be required to forfeit gains from prohibited trades. The restrictions do not apply to prediction-market betting related to sports and entertainment, the source said. For Morgan Stanley, a person familiar with the matter said the bank's employee code of conduct includes rules for prediction-market betting, among other trading and investing topics.
The person declined to specify the policies. JPMorgan Chase also has a similar policy in its code of conduct that prohibits employees from trading on any non-public, confidential information, which also extends to betting on prediction markets, a bank source said.
Bank of America restricts employees from trading in certain event or prediction-market contracts including company-specific, macroeconomic and financial services events, according to a source with knowledge of the matter. A BofA spokesperson confirmed that the bank recently provided updates to more explicitly outline prohibited activities for employees and to offer examples. Citigroup declined to comment.
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