Kalshi taps Nasdaq to strengthen prediction market surveillance

Traders Union
All News
Crypto
Kalshi adds Nasdaq tools

Highlights

Kalshi will integrate Nasdaq's market surveillance technology.
The system will help detect manipulation and insider trading in real time.
The partnership comes amid growing regulatory scrutiny of prediction markets.

Kalshi will introduce Nasdaq market surveillance technology in phases, combining it with the company's existing monitoring systems. The agreement is intended to improve real-time detection of suspicious activity and help Kalshi provide trading data to the Commodity Futures Trading Commission in the regulator's required format, according to Reuters.

Surveillance expands as scrutiny grows

Nasdaq's system operates around the clock and is designed to identify potentially abusive trading behavior across asset classes. Kalshi plans to apply the technology to prediction markets and perpetual-style derivatives, expanding its ability to detect manipulation and possible insider trading.

The partnership follows several cases that have drawn regulatory attention to activity on prediction platforms. The CFTC last month fined former Republican Representative George Santos $35,000 over alleged manipulative trading on Kalshi. In addition, a White House teleprompter operator is also under investigation over suspected insider trading on the platform.

Kalshi referred suspicious trading activity in both cases to regulators. The company prohibits insider trading and market manipulation and has also increased hiring for its surveillance unit this year.

Prediction markets face a test of market integrity

The agreement highlights how prediction markets are increasingly adopting infrastructure associated with established financial exchanges. Users can trade contracts tied to the outcomes of political, economic, and other events, creating markets where access to nonpublic information can raise difficult questions for regulators.

Nasdaq already supplies its surveillance platform to more than 50 exchanges and 20 international regulators worldwide. Bringing that technology to Kalshi gives the prediction market operator access to monitoring tools used across traditional financial markets.

The move also reflects the changing scale of the sector. As prediction markets attract more trading activity, their surveillance systems must process larger volumes while distinguishing legitimate information-driven trading from potential abuse.

For Kalshi, stronger monitoring could become increasingly important as regulators examine whether existing rules provide sufficient safeguards for rapidly expanding event markets. The partnership does not eliminate the risk of misconduct, but it gives the company additional tools to identify suspicious patterns and report them to regulators.

That could help shape a broader question facing the industry: whether prediction markets can grow into a mainstream financial product while meeting standards of transparency and market integrity comparable with established exchanges.

We have previously highlighted that Kalshi expands into perpetual futures beyond crypto.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.