In Global Relay Intelligence & Practice, Katie Daniels Discussed Prediction Markets Compliance Risks

In a Global Relay Intelligence & Practice article, Katie Daniels, director of ethics, compliance and insights at R&G Insights Lab, discussed how prediction markets are creating new compliance challenges around the protection of confidential information.

Katie emphasized that while prediction markets offer a novel way for employees to monetize non-public knowledge, organizations should focus on the information itself rather than the activity. "It's a new problem with an old issue, which is misuse of information" she said, noting employees have no right to use the information. Katie recommends that companies address the risk through existing conflicts policies and plain-language guidance.

She also cautioned against relying solely on blanket bans: "I've never been a fan of explicit bans. I think it just moves the activity elsewhere." Instead, Katie advised compliance teams to keep policies explicit, train employees regularly, and equip managers to coach staff on confidentiality expectations.