Kalshi has partnered with compliance technology firm Comply to help institutions monitor their employees' trading activity on prediction markets for insider trading risks, according to an announcement on August 4.
Comply, which serves more than 5,000 firms, will integrate monitoring of Kalshi's prediction market platform into its existing compliance suite. The partnership extends the scope of insider trading surveillance beyond traditional securities to event-based contracts that allow employees to bet on outcomes including regulatory decisions, election results, and corporate events. Prediction markets have grown as a category of financial betting available to retail and institutional traders, and regulators have flagged the risk that employees with material nonpublic information could trade ahead of company announcements.
Kalshi is the largest U.S. prediction market operator by volume and the first to receive Commodity Futures Trading Commission approval to offer event contracts to retail traders. The platform allows users to trade binary contracts tied to yes-or-no outcomes, with payoffs determined by what occurs. Comply's existing clients already monitor employee stock trading, options activity, and communications for insider trading detection; the Kalshi integration adds another asset class to that detection workflow.
The announcement does not specify how many Comply clients have activated the Kalshi monitoring feature or when the integration will be fully live. Comply declined to disclose whether the partnership includes equity stakes or revenue sharing terms. The firm is private and does not disclose financial performance.
Insider trading enforcement on prediction markets remains nascent. The SEC and CFTC have issued guidance warning that employees trading on nonpublic information violates securities law even on platforms that operate outside traditional exchange regulation. In March 2024, the CFTC charged a Tesla employee with insider trading after he wagered on Kalshi contracts tied to the company's earnings announcement, using information he obtained through his role in finance operations.
Comply entered the compliance technology market in 2018 and competes with vendors including Compliance.ai, Workiva, and Donnelley Financial Solutions. The market for insider trading detection software has consolidated around firms that combine natural language processing of employee communications with transaction monitoring and behavioral analytics. Comply has raised undisclosed funding and is backed by venture capital and compliance-focused investors.
Large asset managers and corporate treasury teams can now route employee trading surveillance through existing guardrails. Comply's 5,000-firm customer base represents roughly 15 percent of U.S. public companies and a larger share of major financial institutions; how many of those firms choose to activate prediction market monitoring will show whether insider trading risk on these platforms becomes a material compliance concern for large employers.
