Facing growing scrutiny over market integrity, Kalshi is bringing Nasdaq’s market-surveillance technology into its monitoring infrastructure — a move the exchange says is designed to detect insider trading, manipulation, and other forms of market abuse across its prediction-market products. The Nasdaq Market Surveillance platform will sit on top of Kalshi’s existing systems and extend coverage to both event contracts and perpetual-style derivatives, according to PokerNews.
The practical reach of the integration is significant. Nasdaq’s system is designed to reconstruct order-book activity and identify patterns across venues, products, and asset classes — capabilities that address a core challenge in prediction markets, where suspicious activity may not be visible within a single contract. A trader could, for instance, build related positions across several markets, use multiple products to obscure a strategy, or attempt to move one market to profit in another.
Kalshi’s announcement also states the technology will help the exchange deliver trading data to the U.S. Commodity Futures Trading Commission in the agency’s required format. Tony Sio, identified by PokerNews as Nasdaq’s head of regulatory strategy and innovation, said the growth of prediction markets requires surveillance infrastructure that can keep pace with the industry.
The partnership comes at a moment of heightened regulatory attention. In July, the CFTC ordered former Rep. George Santos to pay $35,000 over manipulative trading in a Kalshi contract tied to his attendance at the State of the Union. Separately, Reuters reported that a White House teleprompter operator is under investigation for potentially trading with advance knowledge of President Donald Trump’s remarks — a case that has drawn broader attention to insider-trading risks in politically themed markets.
Kalshi has been building out its compliance infrastructure for some time. The exchange developed an internal surveillance system known as “Poirot” and previously added technology from Solidus Labs, according to PokerNews. In February, Kalshi disclosed that it had opened more than 200 investigations during the prior year and had frozen accounts connected to suspicious activity — a disclosure that underscored both the volume of potential misconduct and the limits of any single monitoring layer. The Nasdaq addition brings cross-market and cross-asset analytical tools drawn from traditional financial markets, scale and institutional experience that PokerNews described as an important upgrade to that existing framework.
PokerNews noted that prediction markets are unlikely to develop into durable financial institutions if ordinary traders come to believe that unusual price movements routinely result from privileged access to nonpublic information — framing market-integrity infrastructure not merely as a compliance obligation, but as a condition necessary for liquidity to persist.
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