Goldman Sachs bans employee trading on prediction markets

Goldman Sachs has formally prohibited its employees worldwide from trading on prediction markets tied to financial outcomes, political events, and other specific contracts, according to an updated internal policy. The move, implemented in July 2026, marks one of the most comprehensive restrictions by a major Wall Street bank on employee participation in these rapidly growing platforms.

The new policy explicitly bans trading in event contracts linked to individual companies, including Goldman Sachs itself, as well as election results, financial market performance, macroeconomic indicators, and geopolitical events such as ceasefire timelines. It also prohibits bets on the price of Bitcoin and the regulatory approval of mergers. The only permitted activities under the policy are sports and entertainment betting.

Violations carry significant penalties. Repeated offenses can lead to termination or the closure of personal trading accounts. For any trade deemed improper, the bank reserves the right to confiscate profits exceeding $200 or require the employee to donate that amount to a charity of the bank's choosing.

The policy shift reflects heightened concerns about insider trading...