Apple has announced of the updated policy prohibiting employees from participating in prediction markets, using confidential company information to trade contracts.
The company’s latest Form 10-K filing with the SEC outlines how Apple prohibits its employees from speculating in prediction markets. The new rule applies to all predictions based on the information that employees obtain from their work.
The filing states:
Do not participate in ‘prediction markets’ or similar platforms to wager, bet, trade, buy or sell contracts based on the outcome of future events, or otherwise enter into event contracts, when such activity involves the use of Apple Confidential Information.
In addition to the company’s non-public confidential information, such trading activity is also banned where confidential information about other companies is involved.
Moreover, employees have been warned against leaking confidential information to third parties.
Apple has imposed rules while the prediction market industry in the US grows and investments soar, but regulations also become stricter. Over 20 states in the US are currently involved in a dispute with prediction market services. The argument is primarily whether such products should be treated as securities in line with federal commodities laws or as gambling products in accordance with state regulations.
A number of states contend that the contracts associated with sports events fall under gambling laws, thus opposing the services’ claims that prediction market activities can be classified as financial market operations under federal laws.
As prediction markets continue to attract users and investment, Apple’s updated policy highlights how concerns over insider information and market integrity are increasingly extending beyond regulators and platform operators to major corporations and their employees.