Kalshi partners with Nasdaq to bolster trade surveillance

Prediction market operator Kalshi has entered a multi-year partnership with Nasdaq to adopt the exchange’s market surveillance tool, a move designed to strengthen the monitoring and oversight of trading activity on its platform. The deal, unveiled on Monday, involves a phased implementation of Nasdaq’s surveillance platform, which currently serves more than 50 exchanges and 20 international regulators globally.

The integration allows Kalshi to pair its existing surveillance framework with Nasdaq’s advanced monitoring capabilities, specifically targeting prediction markets and perpetual-style derivatives. According to Max Crowley, vice president of business development at Kalshi, the agreement reinforces the company’s commitment to market integrity and provides access to surveillance data utilised by the world’s largest exchanges.

Tony Sio, head of regulatory strategy and innovation at Nasdaq, noted that prediction markets are among the fastest-growing segments of the financial landscape. He stated that the sector demands surveillance infrastructure with the scale and expertise to match its rapid expansion.

The partnership supports the real-time detection of market abuse, manipulation, and insider trading, while also facilitating the delivery of trade data to the Commodity Futures Trading Commission (CFTC) in the required format. Kalshi has ramped up hiring in its surveillance unit this year and prohibits market manipulation and insider trading on its platform.

This initiative follows heightened regulatory scrutiny and recent enforcement actions against individuals for alleged manipulative and insider trading on the platform. Last month, the CFTC fined former Republican Representative George Santos $35,000 over alleged manipulative trading. Additionally, a White House teleprompter operator is under investigation over potential insider trading, with Kalshi having referred suspicious activity in both cases to regulators.