Key facts
- Kalshi filed with the CFTC to launch equity index perpetual futures.
- These contracts will allow leveraged trading on stock market benchmarks such as the S&P 500.
- Perpetual futures lack a fixed expiration date, enabling indefinite positions.
- Kalshi also filed for copper perpetuals.
- Equity index contracts fall under CFTC regulation, not the SEC.
Prediction market startup Kalshi has filed with the U.S. Commodity Futures Trading Commission (CFTC) to launch equity index perpetual futures, a type of contract that would enable traders to take leveraged positions on stock market benchmarks like the S&P 500 without owning the underlying shares. This strategic move is part of Kalshi's plan to expand beyond event contracts into multiple asset classes and directly compete with traditional exchange operators. Perpetual futures, also known as 'perps,' are derivatives that do not have a traditional expiration date, allowing traders to hold positions indefinitely. By applying this structure to broad stock indexes, Kalshi aims to offer a product that tracks major U.S. stock indexes with leveraged exposure. In addition to equity index perpetuals, Kalshi also filed for copper perpetuals. The company noted that equity index contracts do not require SEC approval because broad-based equity baskets are regulated by the CFTC.