Oct 26 (Reuters) - S&P Dow Jones Indices and Kalshi on Monday signed a preferred-provider agreement, allowing the prediction market platform to list event contracts linked to prominent benchmarks while S&P will construct new indexes using the partner's data.
Here are more details:
• The agreement provides a trust cushion for Kalshi, which has battled allegations of being a gambling platform, as S&P DJI is a well-known and trusted name in the financial world
• Upcoming event contracts on the prediction market will settle against official index values published by S&P DJI, the companies said
• "S&P DJI is the gold standard for benchmarks. Bringing that standard to Kalshi is an important step toward accelerating retail and institutional demand," Kalshi CEO Tarek Mansour said in a statement
• The partnership will also leverage Kalshi's prediction data to build new S&P indices tracking economics, politics, and sporting events marking the financial information provider's foray into the nascent prediction market world
• "Our collaboration extends S&P DJI's role as the world's leading benchmark provider into one of the fastest-growing categories in financial markets," said Cathy Clay, CEO of S&P Dow Jones Indices
• The rapidly expanding prediction market industry, pioneered by platforms such as Kalshi and Polymarket, has gained prominence by enabling users to wager on outcomes ranging from sports and elections to military operations
(Reporting by Pritam Biswas in Bengaluru; Editing by Leroy Leo)