Goldman Sachs Bans Prediction Market Bets on Finance, Politics and Own Deals
GS•Goldman Sachs has updated its personal trading policy to ban employees from placing prediction market bets on financial market performance, macroeconomic data, electoral outcomes and contracts tied to the firm. The bank will claw back any gains above $200 or direct them to charity and may suspend accounts or dismiss staff for repeat violations.
1. Revision to Personal Trading Policy
Goldman Sachs has expanded its personal trading rules to prohibit employees from wagering on event contracts linked to specific companies, financial market movements, macroeconomic releases, geopolitical developments and electoral outcomes, as well as bets on its own corporate actions.
2. Enforcement Mechanisms
Under the updated policy, any gains exceeding $200 from prohibited trades will be clawed back or donated to charity, while staff who breach the rules more than once face account shutdowns or termination.
3. Industry Context and Competitive Response
Competitors vary in their approach: some global banks issue cautionary guidelines, while leading hedge funds have fully barred staff from prediction market activity, reflecting growing regulatory and insider-trading concerns.
