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Kalshi and StarCompliance launch global solution to help monitor employee trading

The new prediction markets monitoring solution offers automated surveillance for on-chain and off-chain ecosystems, as well as configurable alerts based on firm-defined risk parameters.

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Kalshi and StarCompliance launch global solution to help monitor employee trading
Key Points
The release states that ‘as prediction markets continue to grow,’ employees have an ‘additional avenue to profit from the misuse of MNPI’
StarCompliance’s solution also monitors transaction volume, trading patterns, market categories and work-hour activity

Kalshi has formed a new partnership with StarCompliance to develop an industry-first global compliance solution, offering Star client firms the ability to monitor employee participation across various prediction markets. 

"Prediction markets are becoming an increasingly important part of the global financial ecosystem," Kalshi VP of Business Development Max Crowley said. 

"As institutional adoption accelerates, firms require compliance infrastructure that supports responsible participation while adapting to evolving regulatory expectations. We've always been compliance-obsessed at Kalshi, and we're thrilled to partner with Star to bring enterprise-grade oversight and expertise to this emerging market category."

The new prediction markets monitoring solution offers automated surveillance for on-chain and off-chain ecosystems, as well as configurable alerts based on firm-defined risk parameters. 

Star client firms can also monitor transaction volume, trading patterns, market categories and work-hour activity, providing “visibility” into potentially suspicious employee activity across off-and on-chain environments. 

The release states that “as prediction markets continue to grow,” institutions face new risks given employees have an “additional avenue to profit from the misuse of material non-public information (MNPI).” 

Kelvin Dickenson – Star CPO – also spoke on the new agreement, having said: "Prediction markets represent a rapidly emerging area of employee conduct and MNPI risk. 

“As these markets evolve globally, firms need surveillance capabilities that adapt across jurisdictions and provide meaningful visibility into both on-chain and off-chain prediction market activity."

Star and Kalshi both confirmed they will support client firms as regulations, trading behaviors and supervisory expectations continue to develop around prediction markets, with employees currently able to link their accounts to the new solution. 

In Nevada, the state’s Gaming Control Board (NGCB) submitted a request to the First Judicial State Court to hold Kalshi in contempt over the operator’s alleged failure to implement geofencing measures for its prediction markets offering.

The NGCB requested the court enter a finding of contempt and impose “significant” monetary penalties against Kalshi for violating the order.

Good to know

Sportradar formed a new multi-year global partnership with Kalshi on June 8, marking what the companies describe as a first-of-its-kind agreement focused on sports data, infrastructure and market integrity

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