Kalshi adopts Nasdaq surveillance tech to strengthen market oversight

Kalshi is enhancing its market oversight measures through a long-term agreement with Nasdaq Market Surveillance, equipping the exchange with advanced tools to identify possible instances of market abuse. The partnership will see Kalshi gradually integrate Nasdaq's surveillance technology across its event contracts and perpetual-style futures markets.

This system will offer comprehensive, cross-market and cross-asset monitoring, capable of detecting real-time signs of manipulation, insider trading, and other unlawful activities.

The move by Kalshi is driven by the growing interest from institutional investors and the surge in trading activity for a wider array of contracts. The surveillance system will be seamlessly integrated with Kalshi's current trading infrastructure, and it is built to expand as the exchange incorporates new products and markets. Furthermore, it will facilitate Kalshi's compliance with the Commodity Futures Trading Commission's data submission requirements.

Operating as a CFTC-regulated exchange, Kalshi already employs its own market surveillance and enforcement systems, prohibiting actions such as market manipulation and insider trading. It also imposes restrictions on the types of contracts that can be listed and mandates users to undergo background checks before engaging in trading.

The Nasdaq collaboration introduces a recognized surveillance layer at a time when trading volumes are increasing and more institutional participants are joining the prediction-market sector. Notably, Nasdaq Market Surveillance is employed by over 50 exchanges and 20 international regulators.