UK urged to act as Polymarket takes bets on whether HSBC and Lloyds will fail
Revelation comes amid mounting concern over online prediction market’s effects on integrity of financial system UK authorities are being urged to intervene after it emerged that the online prediction market Polymarket has been taking thousands of dollars worth of bets over whether HSBC and Lloyds will fail. Polymarket – the US-owned company which holds bets on anything from football matches, to…
The online prediction market platform Polymarket has been receiving bets worth thousands of dollars on whether major global banks, such as HSBC and Lloyds Banking Group, will fail by the end of this year. The United Kingdom is urging its financial authorities to take action due to concerns regarding the potential impacts on market integrity and the broader financial system.
Polymarket, a US-based company, has allowed users from approximately 150 countries to place bets on various events, including bank failures, without restrictions on UK residents, US, Canadian, and EU users. While the company claims that the information is publicly available, academics have warned about the risks of insider trading and market manipulation, which could potentially trigger bank runs and severe financial instability.
The UK's Financial Conduct Authority (FCA) has been discussing prediction markets with international regulators to address these concerns.
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