Key facts
- Kalshi has partnered with Nasdaq to implement Nasdaq's market surveillance platform.
- The partnership aims to enhance trade surveillance and detect market abuse on Kalshi.
- The integration will assist in real-time detection of market manipulation and insider trading.
- Kalshi will use the platform to deliver trade data to the Commodity Futures Trading Commission.
- The deal follows recent regulatory actions against individuals for alleged manipulative trading on Kalshi.
Prediction markets giant Kalshi has partnered with Nasdaq to integrate the latter's market surveillance technology onto its platform. The multi-year agreement, announced Monday, aims to bolster Kalshi's oversight of trading activity and detect market abuse, including insider trading.
Kalshi plans a phased implementation of Nasdaq's platform, combining it with its existing surveillance framework to monitor prediction markets and perpetual-style derivatives. This integration is expected to facilitate real-time detection of manipulative trading behaviors and ensure compliance with data delivery requirements for the Commodity Futures Trading Commission (CFTC).
The partnership comes amid increased scrutiny of prediction markets following alleged insider trading cases. Kalshi has referred suspicious trading activity in these cases to regulators. The platform prohibits market manipulation and insider trading.
Nasdaq's surveillance platform is utilized by over 50 exchanges and 20 international regulators globally. Tony Sio, head of regulatory strategy and innovation at Nasdaq, noted that prediction markets require surveillance infrastructure with significant scale and expertise to match their rapid growth.