Wall Street Banks Restrict Prediction Market Trading over Insider-Risk Fears
The post Wall Street Banks Restrict Prediction Market Trading over Insider-Risk Fears appeared on BitcoinEthereumNews.com. Wall Street banks are restricting employee trading on prediction market platforms due to fears that they may use nonpublic information to trade event contracts. Goldman Sachs has reportedly banned its employees from trading on event contracts that are specific to the bank, including financial markets, macroeconomic events, elections and geopolitics, CNBC reported, citing people familiar with the matter. Unnamed sources from Morgan Stanley also told CNBC that the bank has policies regarding prediction market trading by employees, while a spokesperson for Bank of America said the bank was in the process of issuing new prohibitive measures for employees on prediction market trading. The report adds to insider trading fears around prediction markets, which attracted the attention of the White House and US lawmakers, who proposed legislation aimed at restricting politic