Polymarket updates market integrity rules, explicitly prohibiting three types of insider trading behaviors
According to official news, Polymarket announced today that it has updated its DeFi platform and the market integrity rules of its U.S. exchange regulated by the Commodity Futures Trading Commission (CFTC). These rules have been incorporated into the Terms of Use of the DeFi platform and the Polymarket U.S. Rules Manual, further strengthening Polymarket's requirements against insider trading and market manipulation, and reaffirming Polymarket's commitment to maintaining market quality and protecting user rights.
The updated rules clarify three core prohibited insider trading behaviors:
Trading based on stolen confidential information ------ If a participant possesses confidential information about the outcome or potential outcomes of an underlying event, and using that information would violate a pre-existing trust or confidentiality obligation to others or entities, the participant may not engage in any contract trading.
Prohibition on trading based on illegal insider information ------ Participants may not trade based on confidential information provided to them by others if that information was provided by someone who has a prior trust or confidentiality obligation to others, and the participant knows or has reason to know that the person providing that information would themselves be prohibited from trading based on that information.
Trading by individuals who can influence the outcome ------ If a participant has the authority or influence sufficient to affect the outcome of the underlying event, they may not engage in any contract trading.
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