Kalshi has partnered with Comply to provide financial firms with direct oversight of employee prediction market trades. The integration addresses insider trading risks as institutions evaluate event contracts and future derivatives, placing workplace surveillance at the center of Kalshi's institutional expansion strategy. Kalshi operates as a CFTC-regulated designated contract market, a status that allows it to legally offer event contracts under federal commodities law — a framework that also underpins the jurisdictional tension with state-level challenges to its business model.

Comply Integrates Kalshi Transaction Data Into Workplace Monitoring

Comply will incorporate Kalshi transaction data into compliance software already used by more than 5,000 financial firms. Clients will be able to view employee positions alongside monitored activity in securities and digital assets, allowing compliance teams to compare event contract activity against each company's internal trading rules.

The tools will flag trades involving material nonpublic information or events connected to an employee's professional access. Firms may restrict specific markets without implementing a blanket ban on prediction market participation, giving employers greater control while preserving approved access for staff.

The integration will also extend to Kalshi's planned perpetual futures contracts once those products launch. Comply already supports prediction market monitoring through a separate Polymarket data partnership with ZenLedger, building broader coverage across both regulated and blockchain-based trading venues.

Institutions Seek Clearer Prediction Market Compliance Controls

Prediction market trading volumes surged during the 2024 US election cycle, drawing first-time retail participants and renewed institutional interest. That growth has heightened compliance concerns at financial firms unaccustomed to monitoring event contract positions alongside traditional securities activity.

Kalshi already monitors platform activity through its internal surveillance and enforcement teams. However, financial institutions want direct visibility through the same systems they already use to manage employee trading. The Comply partnership addresses that demand without requiring firms to build separate monitoring infrastructure.

Kalshi reached a similar agreement with StarCompliance in June to expand employer oversight capabilities. Both partnerships support account reviews, policy enforcement, and investigations into suspicious employee activity, positioning event contracts within established compliance processes used across financial markets.

Banks and asset managers routinely require staff to disclose accounts and seek approval before executing certain trades. Prediction markets introduce additional risk vectors because contracts may cover economic reports, elections, corporate events, or official statements. Workplace monitoring enables firms to identify conflicts before those positions create legal or reputational exposure.

Legal Pressure Heightens Surveillance Stakes

The compliance expansion comes as Kalshi faces a major lawsuit from New York. State officials accuse the platform of operating unlicensed gambling products under the structure of event contracts. New York contends that penalties, restitution, and disgorgement could reach approximately $36 billion. The case reflects a broader unresolved question about whether event contracts on political and real-world outcomes constitute federally regulated commodities or state-regulated gambling — a distinction the CFTC has itself been examining through public proceedings on event contract oversight.

Kalshi moved the case from state court to federal court following the July 31 filing. That transfer ended the state judge's immediate review of New York's preliminary injunction request, though the procedural move did not resolve the state's allegations or the broader jurisdiction dispute.

A recent CFTC enforcement action further illustrated the risks tied to access to sensitive information. Former Representative George Santos surrendered $17,569.98 in gains and paid a $17,500 civil penalty. He also accepted a three-year trading ban without admitting or denying the regulator's findings.