According to The Financial Times, U.S. internet broker Robinhood has excluded some event contracts that could potentially trigger market manipulation and insider trading in its rapidly growing prediction market business. Robinhood UK President Jordan Sinclair stated that the company is highly concerned about market abuse risks and has explicitly refused to offer contracts such as "Mention Markets." These markets allow users to bet on specific keywords appearing in speeches or earnings call transcripts, and due to their high susceptibility to internal control, related editors have previously been penalized for insider trading.
According to The Financial Times, U.S. internet broker Robinhood has excluded some event contracts that could potentially trigger market manipulation and insider trading in its rapidly growing prediction market business. Robinhood UK President Jordan Sinclair stated that the company is highly concerned about market abuse risks and has explicitly refused to offer contracts such as "Mention Markets." These markets allow users to bet on specific keywords appearing in speeches or earnings call transcripts, and due to their high susceptibility to internal control, related editors have previously been penalized for insider trading.