Kalshi files for S&P 500 perpetual futures in challenge to traditional exchanges

Prediction market startup Kalshi filed with the US Commodity Futures Trading Commission (CFTC) on Tuesday to launch equity index perpetuals, a type of futures contract that would let traders take leveraged long or short positions on stock market benchmarks such as the S&P 500 without owning the underlying shares.

Here are more details:

• The move is part of Kalshi's broader strategy to compete with traditional exchange operators by expanding beyond event contracts into multiple asset classes through perpetual futures.
• Kalshi's filing for equity index perpetual futures would put the prediction market operator in more direct competition with traditional derivatives exchanges by offering a product that tracks a major US stock indexes without a fixed expiration date.
• Perpetual futures, or perps, are derivatives that lack a traditional expiration date, allowing traders to hold positions indefinitely without rolling over contracts.
• Equity index perpetuals would apply that structure to broad stock market indexes, while allowing investors to use leverage to amplify exposure to market moves.
• The company, which allows people to wager on the outcome of events including sports and elections, also filed for copper perpetuals.
• Kalshi would not need SEC approval for the equity index contracts because broad-based equity baskets are regulated by the CFTC.

 Reuters

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