Kalshi requires employer disclosures, adds risk scoring

Kalshi will require users to provide employer information before trading certain high-risk markets and has launched a six-factor risk-scoring framework. The measures are effective immediately.

The employer disclosure applies only to contracts the exchange flags as elevated risk for insider trading or manipulation, including markets tied to corporate performance, national security and major geopolitical flashpoints. Traders who seek to trade in those flagged contracts must complete an online form listing their employer. Kalshi will not routinely verify that information unless an investigation is underway, and the exchange may bar users from specific contracts based on employer.

Proposed markets will be scored against six factors: corporate KPI or events risk, outcome concentration risk, market importance, regulatory risk, non-traditional insider risk and national security risk. Markets that register high insider or manipulation risk may be rejected from listing.

Robert DeNault, head of enforcement, wrote: “By running an assessment on the national security risk a market might present before we list it, we can better prevent dangerous events from having a negative effect on our markets-or vice versa.”

Kalshi expanded its surveillance and reporting tools. The surveillance team monitors public order books 24 hours a day, whistleblower channels let users report suspicious activity directly to the surveillance team, and an independent Surveillance Audit Committee will continue to review the integrity and enforcement program and deliver quarterly reports.

The exchange confirmed it opened more than 150 investigations this year, blocked over 100 potential insider trades using screening tools, referred more than 20 cases to law enforcement and took five disciplinary actions. The platform fined and suspended three political candidates for trading on their own elections.

On Capitol Hill, Rep. Bryan Steil (R-WI) has introduced language that would expand a proposed ban on trading based on nonpublic information to cover prediction markets.

Kalshi reported more than $1 billion in perpetual futures volume within a week of launch and has filed to self-certify contracts tied to a dozen major altcoins, including Ethereum, XRP, Solana and Dogecoin.

Marcin Kazmierczak, co-founder and COO of Redstone, called the employer disclosure “a useful filter, not a solution,” and noted it is self-reported and verified only when investigations begin. He said material nonpublic information often moves through contractors, suppliers, advisors and social contacts who would not appear on an employer field, and recommended that employer data be used as an input to risk scoring and surveillance rather than as a standalone gate. He added that users should receive clear explanations about how employment data is stored, accessed and shared with regulators.

Kalshi did not disclose the exact criteria or thresholds used in its risk scores. The employer disclosure will be applied selectively to flagged contracts.