Kalshi seeks nod for never-expiring derivatives in metals, forex, energy

Kalshi, a prediction markets platform, is in advanced discussions with regulators to expand its offerings of never-expiring derivatives, known as perpetual futures, into new asset classes such as metals, foreign exchange, and energy. Unlike conventional futures contracts, perpetual futures do not expire, allowing traders to hold positions indefinitely. This feature, combined with high leverage potential, has drawn criticism from some who deem them risky for retail investors, with CME's outgoing CEO Terry Duffy calling them a "disaster waiting to happen."

Kalshi previously launched the first perpetual futures contracts for crypto trading in the U.S. after receiving clearance from the Commodity Futures Trading Commission (CFTC). The platform is now seeking approval to extend these offerings to other markets, with gold being a particular focus due to its appeal to both retail and institutional investors. Kalshi's chief risk officer, Udesh Jha, indicated that foreign exchange, metals, and energy are in high demand due to geopolitical developments and seasonal market trends. The company's crypto perpetual products have already generated approximately $16.1 billion in trading volume.

These expansion plans place Kalshi in potential competition with Robinhood, which has also been aggressively expanding its derivatives offerings. Robinhood recently introduced multi-asset perpetual futures on Bitstamp, enabling trading across cryptocurrencies, commodities, equity indices, and foreign exchange. Industry reports suggest Robinhood is also working towards launching perpetual futures in the U.S., subject to regulatory approval. If both firms receive the necessary clearances, competition in regulated perpetual futures could intensify, particularly in assets like gold, foreign exchange, and energy, which often attract significant trading activity during economic uncertainty.