Apple Bans Use of Confidential Information in Prediction Markets
United States.- 5 November 2026 | www.zonadeazar.com Apple has updated its corporate insider trading policy to explicitly prohibit employees from using confidential information when trading on prediction markets.
The amendment was introduced in October 2026 and filed with the US Securities and Exchange Commission (SEC) on 3 November, as part of Apple’s annual Form 10-K report.
The decision reflects the growing importance of prediction markets and increasing concerns about the use of non-public information to gain a financial advantage.
Apple Introduces a Specific Restriction
The updated policy includes a section titled No Trading in Prediction Markets Based on Confidential Information.
It prohibits betting, buying or selling event contracts when those transactions involve confidential information obtained through work at Apple.
The restriction covers information concerning Apple itself and other companies whose confidential details become known through professional activities.
The policy does not impose a blanket ban on prediction market trading. It specifically prohibits transactions involving the use of confidential information.
Suppliers and Customers Are Also Covered
The policy extends to confidential information concerning companies with commercial relationships with Apple.
These include:
- Manufacturers and technology suppliers.
- Service providers and distributors.
- Corporate customers.
- Telecommunications operators.
- Other commercial partners.
The measure aims to prevent employees from exploiting information obtained through professional relationships when trading contracts linked to future events.
Directors, Employees and Contractors Affected
The restrictions apply to several categories of individuals associated with Apple:
- Board members.
- Executives and employees.
- Independent contractors and consultants.
- Family members who share a household or are financially dependent.
- Individuals or entities whose transactions are directed or influenced by covered persons.
Apple also prohibits disclosing confidential information to third parties who may use it to participate in prediction markets.
This provision seeks to prevent both direct trading and indirect exploitation of privileged information.
Restrictions Extend Beyond Securities Law
One of the most significant aspects of the update is that Apple has established an internal restriction independent of the legal classification of individual transactions.
The company specifies that the prohibition applies even when the activity does not formally constitute insider trading or securities trading under applicable laws.
This allows its internal compliance framework to cover event contracts whose legal treatment remains subject to regulatory debate.
The version of Apple’s insider trading policy filed in September 2024 did not specifically mention prediction markets.
CFTC Strengthens Market Oversight
Apple’s decision comes as the Commodity Futures Trading Commission (CFTC) increases its focus on the misuse of confidential information in prediction markets.
David Miller, Director of Enforcement at the CFTC, has warned that insider trading rules can also apply to event contracts.
He confirmed that the agency has ongoing investigations involving political candidates who allegedly traded contracts relating to their own elections.
The federal regulator maintains that using information obtained through a professional position can constitute misconduct when it involves a breach of confidentiality obligations.
Investigations Raise Market Integrity Concerns
The regulatory debate also involves platforms such as Kalshi and contracts linked to political and sporting events.
US authorities are investigating potential transactions involving information known before its public release.
One case concerns an individual associated with operating President Donald Trump’s teleprompter, who is being investigated for allegedly using advance knowledge of speeches to generate more than $100,000 in profits on Kalshi.
These remain allegations subject to the relevant investigative and legal processes.
Sports Leagues Also Seek Stronger Safeguards
Concerns about insider trading extend beyond the technology industry.
Adam Silver, Commissioner of the NBA, has said the league wants access to prediction market trading data to identify potential irregularities.
The objective is to detect suspicious activity and protect the integrity of sporting competitions.
These developments highlight the importance of monitoring systems capable of identifying transactions based on advance knowledge of sporting events.
Industry Impact and Next Steps
Apple’s updated policy establishes an important corporate precedent for prediction market compliance.
By explicitly prohibiting the use of confidential information, the company is extending its internal safeguards beyond traditional securities transactions.
The decision demonstrates how prediction markets are increasingly becoming part of corporate integrity policies at major companies, amid greater CFTC scrutiny and concerns about trading on privileged information.
The sector’s development may encourage other businesses to review their internal rules governing the use of confidential information.
Edited by: @fonta
