Kalshi s partnering with compliance software provider Comply, a firm that provides employee-trading surveillance software to financial institutions. The move is designed to address insider-trading concerns and make institutions more comfortable participating in Kalshi markets.
Prediction markets have drawn increasing interest from hedge funds, proprietary trading firms, and retail traders. As participation expands, firms have been seeking tools that allow employee prediction market activity to be monitored alongside stocks, options, and other financial products.
The partnership could remove one of the larger barriers to institutional participation in prediction markets. Many financial firms require employees to disclose trading activity in approved systems, and some may restrict access to products they cannot monitor effectively.
The company said the integration, set to be announced Tuesday, is aimed at making firms more comfortable with employees and institutions trading on Kalshi’s event-contract exchange. Under the deal, Comply will incorporate Kalshi trading data into software used by more than 5,000 primarily financial firms, according to the companies.
That means firms will be able to see employee trades in Kalshi event contracts and use that information to check compliance with internal policies around material, non-public information. Event contracts are financial instruments that pay out based on whether a specific outcome occurs, such as an election result, economic release, or sporting event.
Kalshi said the technology will also extend to its perpetual futures contracts. The deal is one of the latest efforts to build compliance infrastructure around prediction markets as institutional participation grows.
Kalshi expands prediction market compliance tools
The partnership is part of Kalshi’s broader effort to attract institutional liquidity to prediction markets, a category that has drawn more attention from financial firms but also raised questions about how employee trading should be supervised.
Comply chief regulatory service officer Jamila Mayfield said many firms are still building those frameworks.
“Most firms are still figuring out what a reasonably designed prediction market compliance program looks like, and that’s exactly where we come in,” Mayfield said.
Kalshi Vice President of Business Development Max Crowley said firms have been asking whether compliance surveillance exists on their side as institutional interest grows. Kalshi also said it runs an internal surveillance team that reviews platform activity every day.
Prediction market compliance partnerships are expanding
As prediction markets attract more institutional traders and brokerage partnerships, platforms increasingly need the same compliance infrastructure expected in traditional financial markets. Firms that allow employees to trade event contracts typically need tools to monitor activity and identify potential conflicts or misuse of non-public information.
The agreement follows another compliance-related partnership Kalshi announced in June with StarCompliance. Comply also already covers prediction market trades on Polymarket through a partnership with ZenLedger, showing that employee-trading surveillance is becoming part of the infrastructure around the sector.
Kalshi chief compliance officer Sudhir Jain said some companies may otherwise decide to block employees from trading event contracts entirely if they cannot monitor activity. “
Without knowing what employees are doing, their only choice is to say, from a policy perspective, don’t trade at all,” Jain said. “Now they have the data; they can monitor it.”
The companies did not disclose financial terms. It’s unclear when the Kalshi-Comply integration will be available to clients or which firms will use it first.