Kalshi, the federally regulated prediction market exchange, has introduced a trio of market integrity measures effective immediately. The changes — risk scoring for every proposed market, employment verification for high-manipulation-risk contracts, and upgraded whistleblower tools — follow the first report from Kalshi's independent Surveillance Audit Committee. They're designed to catch insider trading before it happens.
Risk scoring before listing
Every proposed market now gets a risk score before Kalshi lists it. The scoring weighs six factors: corporate KPI risk, outcome concentration, market importance, regulatory fit, non-traditional insider risk, and national security risk. The system is meant to flag markets where insiders might have an unnatural edge — for example, a contract tied to a specific company's quarterly sales figures could draw employees who know the numbers early. If a market's score comes back high, Kalshi can delay listing or impose extra controls.
Employment verification for high-risk markets
For markets with elevated insider or manipulation risk, traders now have to provide employment information before any trade executes. Kalshi uses that data to flag presumptive insiders — people who work at companies or agencies whose internal data could move the market. The exchange can then block trades or monitor them in real time. Last quarter alone, Kalshi's screening tools stopped more than 100 potential insider trades.
Whistleblower upgrade and committee oversight
The third measure expands whistleblower reporting tools to every market on the exchange. Tips now route directly to a surveillance team monitoring the feed around the clock. Kalshi's Head of Enforcement, Robert DeNault, said the changes continue to push the industry forward on market integrity among federally regulated prediction markets. In Q1, Kalshi reported more than 150 investigations, over 20 referrals to law enforcement, and five disciplinary actions.
The Surveillance Audit Committee, which produced the report that triggered these measures, will deliver quarterly reports going forward. That means Kalshi's approach to policing its markets is now under regular, independent scrutiny — something no other prediction market exchange has committed to.
Broader crackdown across prediction markets
The moves come as suspicious activity in prediction markets draws wider attention, especially in geopolitical contracts. Kalshi's rival Polymarket recently partnered with Chainalysis to monitor trading activity. Both major platforms have tightened rules to combat insider trading, but Kalshi's new measures — particularly the pre-trade employment check and risk scoring — go further than anything Polymarket has announced.
Whether those tools will catch the kind of abuse that has plagued traditional financial markets — like trading ahead of public data releases — remains an open question. Kalshi's enforcement team will have to show it can act on the tips and flags the system generates. The first test will come with the next quarterly Surveillance Audit Committee report.
