Above Board: What Boards Need to Know About Prediction Markets

In this episode of the Above Board podcast, hosts Scott Lesmes and Haima Marlier are joined by Morrison Foerster partners Trevor Levine and Ryan Adams to examine the rapid rise of prediction markets and the governance, compliance, and enforcement questions they raise for public companies. Trevor explains how prediction markets operate, why they fall under CFTC jurisdiction, and the regulatory safeguards built into these markets. Ryan then explores the insider trading and anti-fraud risks prediction markets create for public companies, particularly where employees may trade on confidential or non-public information tied to corporate events. The discussion closes with practical guidance for boards and legal teams, including why companies should proactively update insider trading policies, codes of conduct, and employee training to expressly address prediction market activity.