Kalshi adopts Nasdaq surveillance to police insider trading
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Kalshi announced a multiyear partnership with Nasdaq on Monday to adopt the exchange's market surveillance platform, rolling it out in phases across its prediction markets and perpetual-style derivatives.
- Kalshi will integrate Nasdaq's round-the-clock surveillance with its existing framework, enabling real-time detection of market abuse and insider trading, and delivering trade data to the CFTC in the agency's required format.
- Nasdaq's market surveillance platform currently serves over 50 exchanges and 20 international regulators globally, and Nasdaq head of regulatory strategy Tony Sio framed prediction markets as 'among the fastest-growing segments of the financial landscape' requiring scaled infrastructure.
- The CFTC fined former Republican Rep. George Santos $35,000 last month over alleged manipulative trading on Kalshi, while a White House teleprompter operator is under investigation for potential insider trading on the platform, per Reuters.
- Kalshi referred suspicious trading activity in both the Santos and teleprompter-operator cases to regulators, and has ramped up hiring in its surveillance unit throughout 2025.
- Kalshi VP Max Crowley called the deal a reinforcement of the company's 'commitment to market integrity,' noting it gives Kalshi access to surveillance data used by the world's largest exchanges.
Why it matters: The partnership lands as prediction markets confront their first high-profile enforcement actions — a $35,000 CFTC fine against George Santos and an insider-trading probe into a White House staffer — giving Kalshi a credibility tool it can point to when lawmakers ask whether its platform can police itself.
Ask SkimNews
