Wall Street giant Goldman Sachs has barred employees from trading on prediction-market contracts linked to financial markets and political events, a source familiar with the matter said on Thursday.
A memo was issued some time back in which the policy prohibits staff from participating in event-based contracts that could create real or perceived conflicts of interest with the bank, its clients or the broader financial industry.
Bloomberg News, which first reported the policy, said repeated violations could result in disciplinary action, including termination, and that employees may be required to forfeit gains from prohibited trades.
The restrictions do not apply to prediction-market contracts related to sports and entertainment, the source said.