Wall Street powerhouse Goldman Sachs has told its employees they are no longer allowed to participate in prediction-market contracts connected to financial markets or political events, according to a source with knowledge of the situation who spoke on Thursday.
The firm issued an internal memo at some point in the past laying out the new policy, which is designed to prevent situations where staff trading activity could create actual or apparent conflicts of interest — whether with the bank itself, its clients, or the wider financial industry.
Bloomberg News, which broke the story first, reported that employees who repeatedly break the rule could face disciplinary consequences up to and including losing their jobs. Those workers may also be required to give back any financial gains earned through trades that violate the policy.
However, the ban does not extend to all prediction markets — contracts related to sports and entertainment remain fair game for employees, the source noted.
