Kalshi files for stock index perpetuals 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 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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