Prediction market platform Kalshi today announced a major expansion of its market surveillance and enforcement framework. The company has formed an independent surveillance advisory committee and new trading surveillance partnerships with Solidus Labs and the Director of the Wharton Forensic Analytics Lab, Daniel Taylor.

These initiatives further strengthen Kalshi’s market surveillance and compliance programs, solidifying its position as the leading federally regulated prediction market. 

Founded in 2018, Kalshi created and established prediction markets as a new financial asset class. Its founders spent the first few years of the company’s inception getting regulatory approval from the CFTC, before they launched a single product. Like the healthcare and banking industries, they knew regulation was critical to earning trust and legitimacy.

Being federally regulated means that Kalshi bans market manipulation, insider trading, has limits on the types of markets it lists, runs Know-Your-Customer (KYC) and Anti-Money Laundering (AML) checks on every user before they can trade, and publicly reports all trades to the CFTC daily. Kalshi also spent years building custom prediction market  trade surveillance and enforcement systems that are similar to those used in the stock market. 

“We are proud to support Kalshi on its mission to reinvent financial markets with event-based trading,” said Asaf Meir, Founder and CEO of Solidus Labs. “At Solidus, we believe that a platform built to trade on the future deserves a trade surveillance partner that isn’t stuck in the past. By deploying Solidus’ agentic trade surveillance and compliance hub, Kalshi is demonstrating once again its highest commitment to consumer investor protection and market integrity.”

“Market integrity is one of the pillars of Kalshi’s growth strategy. I am pleased to advise Kalshi on further processes and safeguards to detect and deter insider trading and market manipulation,” said Daniel Taylor, Director of the Wharton Forensic Analytics Lab.

“Kalshi was the first to regulate prediction markets in America,” said Robert DeNault, Head of Enforcement. “We’re now bringing on some of the industry’s leading surveillance experts to build and guide the future of prediction market compliance.”