TL;DR
- Compliance Integration: Comply adds Kalshi’s trade data to its regulatory software for employee monitoring.
- Institutional Demand: Firms exploring prediction markets expect surveillance tools similar to traditional asset trading.
- Policy Impact: Access to trade data may help companies avoid blanket bans on employee participation.
Prediction market platform Kalshi is expanding its institutional toolkit through a new partnership with compliance technology company Comply, a move the company told CNBC is part of its broader push into institutional trading. The integration brings Kalshi’s event contract and perpetual futures trade data directly into Comply’s regulatory software, giving firms clearer visibility into employee activity on the platform.
Comply Adds Prediction Market Surveillance Tools
Comply, which works with more than 5,000 primarily financial firms, is incorporating Kalshi’s trade data into its compliance suite for both traditional securities and digital assets. The update allows companies to monitor employees’ activity on event contracts and ensure they are not using material, non‑public information to trade. The same oversight will apply to Kalshi’s perpetual futures products. Jamila Mayfield, Comply’s chief regulatory service officer, said firms are still determining what a well‑designed prediction market compliance program should look like.
She noted that Comply aims to provide both the technology and regulatory expertise needed to build programs that withstand scrutiny. Comply already covers prediction market trades on Polymarket through a partnership with ZenLedger, according to a press release, giving the company experience in monitoring activity across emerging market structures.
Institutional Expectations Drive New Partnerships
The partnership follows a similar arrangement between Kalshi and StarCompliance announced in June, which also gives firms visibility into employee trading. Max Crowley, vice president of business development at Kalshi, told CNBC that institutions expect the same compliance infrastructure they rely on for traditional assets when exploring prediction markets.
Crowley said Kalshi maintains an internal surveillance team that reviews platform activity daily, but institutional clients want external visibility as well. He added that firms increasingly ask whether compliance surveillance is available before considering institutional trading.
Avoiding Blanket Trading Bans
CNBC previously reported that many companies are still figuring out how to update internal policies for prediction markets. Sudhir Jain, Kalshi’s chief compliance officer, said some firms may consider blocking employees from trading altogether. He argued that technology like Comply’s can prevent such broad restrictions by giving companies the data they need to monitor activity responsibly.
