Prediction markets exchange Kalshi has signed a multi-year agreement with Nasdaq to deploy Nasdaq's market surveillance platform across its trading infrastructure. The deal, announced on August 10, 2026, will equip Kalshi with real-time detection capabilities for market manipulation, insider trading, and other forms of market abuse.

JUST IN: Kalshi partners with Nasdaq to further strengthen surveillance program. Nasdaq will offer real-time trading alerts and a full surveillance suite for Kalshi available to both customers and regulators. pic.twitter.com/GLvpL94JQZ
— Whale Insider (@WhaleInsider) August 11, 2026

The partnership grants Kalshi access to the same surveillance technology used by major global exchanges. Nasdaq's platform currently serves more than 50 exchanges and 20 international regulators across capital markets worldwide. The deployment comes as prediction markets face distinctive integrity challenges: unlike traditional equities or futures, prediction market contracts settle based on real-world event outcomes, where individuals with advance knowledge—government officials, campaign staff, industry insiders—could exploit non-public information for profit.

Regulatory Pressure and Insider Trading Cases

Kalshi has faced intensifying scrutiny from lawmakers and regulators in recent months, driven by high-profile insider trading incidents.

Last month, the U.S. Commodity Futures Trading Commission (CFTC) fined former Republican Representative George Santos $35,000 over alleged manipulative trading on Kalshi. Separately, a White House teleprompter operator is under investigation for potential insider trading on the platform. Kalshi had referred suspicious activity in both cases to regulators.

The exchange prohibits market manipulation and insider trading and conducts background checks on all users before they are permitted to trade.

Implementation and Scope

Kalshi plans to roll out Nasdaq's surveillance system in phases, integrating it alongside its existing monitoring tools. The platform is designed for continuous 24/7 operation and will cover both prediction markets and perpetual-style derivatives as Kalshi broadens its product offerings.

A key function of the system is supporting the delivery of trade data to the CFTC in the format required by the regulator. Kalshi operates as a CFTC-regulated exchange and is obligated to meet those reporting standards.

Max Crowley, vice president of business development at Kalshi, said the partnership gives its markets access to the same surveillance data used by the world's largest exchanges.

Tony Sio, head of regulatory strategy and innovation at Nasdaq, described prediction markets as one of the fastest-growing segments in finance, requiring surveillance infrastructure capable of keeping pace with that expansion.

Institutional-Grade Compliance Build-Out

Kalshi has been expanding its internal surveillance team throughout 2026. The Nasdaq partnership adds institutional-grade infrastructure on top of that ongoing internal investment.

The agreement underscores the increasing maturity of prediction markets as an asset class. As institutional adoption has grown, the compliance requirements accompanying that expansion have become more pronounced. Automated surveillance technology has been a standard feature of traditional derivatives exchanges operating under the CFTC's regulatory framework for years, and Kalshi's partnership with Nasdaq brings its monitoring capabilities into closer alignment with those established market practices.