Kalshi to require employer disclosures for sensitive markets

Kalshi announced it will require traders to provide employer information when they trade in markets the exchange designates as sensitive. The change affects event contracts tied to corporate, regulatory or other timely outcomes.

The requirement covers markets linked to corporate earnings, regulatory approvals, merger results and timely economic releases. Employer details will be collected during account verification and incorporated into trade surveillance for those markets.

The exchange said it will use the information to identify potential conflicts between a trader's access to nonpublic information and their trading activity. Trades may be flagged for further review if employer data or trading patterns suggest a connection to privileged information.

Where regulators or law enforcement make lawful requests, Kalshi plans to provide records. It added employer data will not be published on the platform and will be managed under its privacy and compliance protocols, though it did not detail retention periods or access controls.

Traders who decline to provide employer information may be restricted from entering markets that require disclosure but can continue trading in markets not classified as sensitive. The exchange will notify users in advance when a market will require employer verification and outline the steps needed.

Kalshi is a U.S.-based exchange that offers event-based contracts regulated by the Commodity Futures Trading Commission. Event contracts settle on the outcome of future events and have attracted regulatory attention because outcomes can sometimes be affected by nonpublic information.

The exchange will continue operating other markets without the employer-disclosure requirement and will periodically review which markets are subject to the rule, adjusting its designations based on risk assessments and regulatory developments.