- Kalshi and StarCompliance launched monitoring tools for employee prediction market activity.
- The system tracks trading patterns, volume, market categories, and work-hour activity.
- Kalshi said it blocked over 100 suspected insider-trading attempts in Q1 2026.
Kalshi has moved to close a compliance gap in prediction markets by partnering with StarCompliance on employee trading surveillance. The deal introduces an enterprise-grade monitoring system designed for firms whose workers may trade event contracts tied to sensitive information.
The partnership targets risks around material nonpublic information, or MNPI, as prediction markets expand beyond retail speculation into a wider financial setting. It follows new controls recently introduced by Kalshi, including employer disclosure requirements for traders in markets seen as vulnerable to insider trading.
Prediction Markets Expose New Employee MNPI Compliance Risks
Financial institutions have long monitored employee activity in stocks, bonds, digital assets, and other regulated products. Prediction markets add a newer challenge because contracts are linked to real-world events rather than traditional securities.
That structure can create conduct risks when employees have access to confidential corporate, regulatory, or market-moving information. As a result, the companies said financial firms now need clearer visibility into employee activity across event-based markets.
In response, StarCompliance is set to add prediction market surveillance to its existing employee and firm compliance technology platform, according to official reports. The system is designed to monitor activity on Kalshi through one centralized compliance platform.
The tool covers both on-chain and off-chain prediction market environments. It can track transaction volume, trading patterns, market categories, and activity during work hours.
Firms will also be able to set configurable alerts using their own risk parameters. The platform includes centralized case management for investigations, audit tracking, and internal review.
Kalshi’s Q1 Probes Put Insider-Trading Controls In Focus
The partnership comes after Kalshi said it had already taken enforcement-related steps against suspicious trading behavior. Earlier this month, the company said it conducted more than 150 investigations during the first quarter of 2026.
Kalshi also said it blocked over 100 suspected insider-trading attempts and referred 20 cases to law enforcement in the same period. Those figures show why employee monitoring is becoming a core compliance issue for prediction markets.
StarCompliance Chief Product Officer Kelvin Dickenson said prediction markets represent an emerging area of employee conduct and MNPI risk. He added that firms need surveillance that adapts across jurisdictions and covers both on-chain and off-chain activity.
Overall, the partnership gives financial institutions a framework for tracking employee participation without separating prediction markets from wider compliance systems. It also reflects the growing need to treat event contracts as part of formal risk supervision.
For firms, the central issue is no longer whether prediction markets are growing. The question is whether existing compliance programs can detect misuse before it becomes an enforcement problem.
Related: Kalshi Introduces Political Power Index as Prediction Markets Expand
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