MCO Tackles Prediction Market Risks with New Employee Trading and Communication Oversight

MCO (MyComplianceOffice) has expanded its integrated compliance platform to include oversight for prediction markets and communication channels like Telegram and Slack. For fintech professionals, this move addresses the rapid growth of non-traditional trading volumes, ensuring that employee activity on platforms like Kalshi and Polymarket is subject to the same rigorous controls as traditional assets.

What was announced

MCO's latest update introduces AI-assisted surveillance and oversight capabilities designed to bridge the gap between traditional financial monitoring and emerging digital behaviors. The enhancements specifically target the rise of prediction markets, where employees may trade on corporate, political, economic, or regulatory outcomes. This sector has seen explosive growth; combined monthly trading volumes on platforms Kalshi and Polymarket jumped from $26 billion in May 2026 to $53 billion by July 2026. For compliance teams, this growth represents a significant new category of employee activity occurring outside traditional systems.

The new functionality allows firms to apply existing personal trading and digital asset controls to these prediction markets. Beyond trading, MCO is broadening its communication surveillance to include collaboration tools such as Slack and Telegram. The platform aims to provide a unified review process that connects employee communications, trading activity, conflicts of interest, and Material Non-Public Information (MNPI) exposure. By integrating these disparate data streams, compliance teams can investigate potential misconduct within a single interface rather than managing siloed systems for different asset classes. The update is positioned as a response to the mainstreaming of prediction markets, which are no longer viewed as fringe activities but as significant venues for financial risk and potential conflicts of interest within regulated firms.

"Prediction markets aren’t a fringe activity anymore. As mainstream participation increases, compliance teams need to account for a new form of employee trading alongside communications happening across more channels. With MyComplianceOffice, firms can now manage prediction market activity under the same controls they use for personal trading and digital assets."

John Kearney, Director of Product Management at MCO.

The companies involved

MCO, also known as MyComplianceOffice, is a prominent provider of integrated compliance technology. The company focuses on helping financial services firms, including banks and asset managers, manage regulatory risk and employee conduct through a centralized platform. MCO has recently undergone significant leadership and capital changes to bolster its market position. This includes the appointment of John Schobel, the former CEO of RegEd, as President. Daragh Tracey serves as the VP of Product Management at MCO, overseeing the firm's technical evolution.

The firm’s growth is supported by substantial financial backing, including more than $100 million in strategic funding from Accel-KKR Credit Partners. This investment is intended to support the company’s global footprint and the development of its technological suite. Accel-KKR Credit Partners, which is associated with ACME Credit Partners, provides capital solutions to technology-enabled services businesses. MCO operates in a highly competitive regtech landscape where the ability to integrate diverse data sources—from traditional equity trades to encrypted messaging apps—is becoming a primary differentiator for enterprise-level compliance solutions.

What FF News has reported before

FF News has closely tracked MCO’s trajectory as it scales its AI-driven compliance offerings. In September 2026, we reported that MCO Secures Strategic Growth Financing from Accel-KKR to Scale AI Compliance Solutions, a move that provided the capital necessary for the platform enhancements seen today. This followed earlier reporting on the company's core mission to streamline regulatory burdens for large institutions. In 2025, FF News covered how MCO Strengthens Compliance Oversight for Financial Services Firms and Banks, highlighting the firm's ongoing efforts to consolidate oversight of employee activity, disclosures, and potential conflicts of interest into a single, manageable ecosystem.

What this means

The inclusion of prediction markets into standard compliance workflows signals a major shift in how the industry perceives "tradable assets." As volumes on platforms like Polymarket double in a matter of months, the regulatory "grey area" these markets once occupied is rapidly closing. Compliance officers are under increasing pressure to prove they can monitor not just what employees say on official channels, but how they might leverage internal knowledge on speculative outcomes. This announcement places traditional surveillance vendors under pressure to match MCO’s breadth. The industry must now grapple with whether existing MNPI frameworks are sufficient for markets that trade on sentiment and geopolitical events rather than just corporate earnings.