Prediction markets give employees new ways to take positions on corporate events, digital assets, economic outcomes, and other market-moving developments. For financial institutions, that creates a new category of employee activity that may introduce potential MNPI, conflicts of interest, front-running, and conduct risks that traditional personal trading controls were not designed to capture.
The challenge goes beyond knowing that an employee placed a trade. Compliance teams need to understand what the market was about, what companies or assets may be implicated, and whether the activity intersects with firm restrictions or information the employee may have access to.
STAR brings prediction market activity into the compliance program, giving firms the visibility, context, and automation needed to identify potential risk without creating another manual monitoring process.
Monitor employee activity across supported prediction markets from the same compliance environment used for other investment activity.
STAR analyzes market titles, questions, outcomes, and tags to identify securities and cryptocurrencies associated with prediction market activity.
STAR can compare related securities and cryptocurrencies with active restrictions and automatically surface activity that warrants compliance attention—helping teams identify potential issues without manually reviewing every transaction.
Bring prediction market activity into an established compliance workflow rather than creating another silo. Review transactions, related assets, alerts, and supporting information from one place—reducing fragmented processes and giving Compliance the context needed to investigate activity efficiently.
Prediction market activity can sit outside the brokerage accounts traditionally covered by employee trading programs, making it difficult to monitor consistently through manual disclosures, statements, or periodic reviews.
Once an employee connects a supported prediction market account, STAR ingests their activity along with relevant market information—including event and market titles, questions, outcomes, tags, and trade details. Compliance gains a more timely and consistent view of activity without introducing another manual reconciliation process.
A prediction market contract may be tied to a company event, security, cryptocurrency, or other market-moving development, but that relationship is not always obvious from the transaction alone.
STAR analyzes the underlying market information to identify relevant securities and cryptocurrencies and associates those assets directly with the prediction market transaction. Reviewers can quickly see what financial instruments may be implicated, reducing manual research and providing stronger context for determining whether activity requires further attention.
Identifying prediction market activity is only the first step. Compliance also needs a scalable way to determine when that activity intersects with the firm’s existing risk controls.
When STAR links a prediction market transaction to a security or cryptocurrency on the active Restricted List, it can automatically raise or update a compliance alert. This helps teams focus their attention on activity with a potential connection to firm restrictions while retaining control over whether the transaction represents a policy breach and what action should follow.
Star’s partnerships help provide the market connectivity and data foundation needed to monitor a rapidly evolving asset class.
Our partnership with Kalshi brings employee Kalshi activity directly into STAR for monitoring and compliance review once an employee connects their account, connecting prediction market participation with established employee trading oversight.
Ensure employee trading and investments meet all regulatory and internal policy requirements.
Gain comprehensive pre-clearance and post-trade oversight across 35+ exchanges, 30+ blockchains, 200+ tokens.
Discover how the rise of prediction markets and the evolution of digital asset oversight are transforming employee compliance, and what firms need to do to stay ahead of emerging risks.
Join StarCompliance and Kalshi for an in-depth discussion on the evolving prediction markets landscape and the compliance challenges firms must address as adoption accelerates.
