“Prediction markets stretch insider trading law past its breaking point”
Legal analysis explaining that insider trading in prediction markets is governed by existing fraud law rather than a distinct insider trading statute. The key question is whether a trader has deceptively breached an implied or explicit promise about how confidential information may be used. Argues prediction markets complicate this analysis by expanding tradable events into contexts where no clear company-based duty exists, making insider trading liability increasingly difficult to determine.
Some technical background helpful