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Goldman Sachs Bans Employees From Trading Prediction Market Contracts
The bank said repeated violations could lead to account closures or dismissal as Wall Street firms tighten rules 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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Goldman Sachs bans employees from some prediction market contracts
Goldman Sachs is placing restrictions on employee trading on some prediction markets, a source familiar confirmed to The Hill on Friday. Staff at the investment banking giant are permitted to place wagers related to sports and entertainment but are barred from trading on markets tied to specific companies, financial markets or election outcomes. Bloomberg first...
·Washington, United States
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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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Total News Sources29
Leaning Left3Leaning Right6Center8Last UpdatedBias Distribution47% Center
Bias Distribution
- 47% of the sources are Center
47% Center
L 18%
C 47%
R 35%
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