Aug 10 (Reuters) - Prediction markets giant Kalshi has

joined hands with Nasdaq to adopt the U.S. exchange

heavyweight's market surveillance tool, as it looks to bolster

the monitoring and oversight of trading activity on its

platform.

The multi-year partnership, unveiled on Monday, reflects a

broader push by Kalshi to strengthen trade surveillance, as

prediction markets face mounting pressure from lawmakers

following high-profile alleged insider trading cases that have

intensified scrutiny of suspicious trades.

Kalshi plans to implement Nasdaq's market surveillance

platform in a phased approach, pairing its existing surveillance

framework with advanced monitoring capabilities for prediction

markets and perpetual-style derivatives.

"This deal reinforces Kalshi's commitment to market

integrity," said Max Crowley, vice president of business

development at Kalshi, adding the partnership gives it

surveillance data used by the world's largest exchanges.

Integrating Nasdaq's round-the-clock surveillance platform

with Kalshi's trading infrastructure will assist in real-time

detection of market abuse, manipulation, and insider trading and

support delivering trade data to the Commodity Futures Trading

Commission in the format the agency requires.

The top U.S. derivatives regulator last month fined former

Republican Representative George Santos $35,000 over alleged

manipulative trading on Kalshi. A White House teleprompter

​operator is also under investigation over potential insider

trading on Kalshi, Reuters reported.

Kalshi, which has also ramped up hiring in its surveillance

unit this year, had referred suspicious trading activity in both

cases to regulators. The platform prohibits market manipulation

and insider trading.

Nasdaq's market surveillance platform serves over 50

exchanges and 20 international regulators globally, helping

detect potentially abusive trading behaviors across asset

classes.

"Prediction markets are among the fastest-growing segments

of the financial landscape, and they demand surveillance

infrastructure with the scale and expertise that can match that

pace," said Tony Sio, head of regulatory strategy and innovation

at Nasdaq.