Microsoft updates its internal insider-trading guidance, clarifying how employees may use prediction markets while following legal and company compliance rules. According to reporting, the policy update tells employees not to use confidential, nonpublic information—often referred to as “inside information”—to place or influence bets in prediction markets. The guidance also indicates that employees may participate in prediction markets using information they are allowed to use, including public or otherwise permissible inputs, rather than relying on restricted material.
The update reflects a distinction between information employees can access through legitimate channels and information that would trigger insider-trading restrictions if used for trading decisions. The reporting notes that the policy language specifically addresses prediction markets, which are commonly used to gauge expectations about future events but can involve trading-like activity. While the new guidance is framed as compliance clarification, it emphasizes that the company treats misuse of nonpublic information as prohibited even in the context of betting on outcomes. The change is positioned as ensuring employees understand the boundaries between permitted participation and improper use of inside information.
