Goldman Sachs restricts employee wagers on prediction markets while rivals prepare to offer similar products to clients.
Goldman Sachs has prohibited its employees from trading prediction market contracts tied to companies, elections, and financial events. The bank updated its personal trading policy to exclude these bets, though sports and entertainment wagers remain permitted.
Prediction markets allow participants to bet on real-world outcomes, such as Federal Reserve rate decisions or political events, with payouts based on results. Wall Street firms have increasingly explored these markets as a new revenue stream, with JPMorgan and others signaling interest in offering such products to clients.
The move by Goldman contrasts with the broader industry trend, where banks typically monetize emerging markets by selling products rather than restricting internal access. The policy shift highlights internal caution amid growing client demand for structured prediction-based investments.