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Goldman Sachs Bans Employees From Trading Prediction Market Contracts
The bank said violations could bring discipline, account closures or dismissal as firms face rising concerns about insider trading on event contracts.
- Goldman Sachs has banned employees from trading prediction market contracts involving elections, financial markets, macroeconomic data, and geopolitics, according to people familiar with the matter.
- This directive follows the first event contract insider-trading case involving a private sector company, when federal authorities charged Google employee Michele Spagnuolo with exploiting inside information to win roughly $1.2 million.
- Under the revised policy, Goldman reserves the right to claw back gains exceeding $200 for improper trades, while Balyasny Asset Management barred all personal-account prediction market activity outright.
- CNBC reached out to 50 publicly traded and privately held companies, finding only three have formalized prediction market policies while 36 did not respond to inquiries about their internal rules.
- Legal experts warn that as insider trading prosecutions increase, businesses face greater pressure to implement specific policies to mitigate liability risks, according to Karen Woody, a law professor at Washington and Lee University.
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26 Articles
26 Articles
Wall Street Giant Limits Participation in Political or Financial Predictions
·Spain
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(Seoul = Yonhap News) Reporter Jung Joo-ho = Bloomberg reported on the 9th (local time) that Goldman Sachs has banned its employees from betting on prediction markets, excluding sports and entertainment.
·Seoul, Korea (the Republic of)
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Sports betting remains allowed, almost all others will have to refrain from Goldman Sachs employees in the future. The investment bank thus reacts to a regulatory wire rope act.
·Düsseldorf, Germany
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Coverage Details
Total News Sources26
Leaning Left3Leaning Right6Center5Last UpdatedBias Distribution43% Right
Bias Distribution
- 43% of the sources lean Right
43% Right
L 21%
C 36%
R 43%
Factuality
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