Introduction
Kalshi, a U.S.‑based prediction‑market platform, has filed a formal request with the Commodity Futures Trading Commission (CFTC) to issue perpetual futures contracts tied to equity indexes. The filing, submitted on Tuesday, marks the latest step in the company’s effort to broaden its product suite beyond the prediction markets that first attracted regulatory approval in late May.
What Are Perpetual Futures?
Perpetual futures, often called “perps,” are a type of futures contract that has no fixed expiry date. Unlike conventional futures, traders do not need to own the underlying asset; the contract price follows the live market value of the asset, and periodic funding payments keep the contract price in line with the spot price. Perpetual contracts have become a popular instrument in the crypto and commodity markets, with a global trading volume projected to reach $90 trillion in 2025.
Kalshi’s New Perpetual Products
Kalshi’s most recent filing seeks approval for a “US500” perpetual, which would be linked to the MerQube U.S. Large Cap Index that tracks the 500 largest U.S. companies. Earlier this year the firm also proposed perps based on precious metals such as gold and silver, and the current submission adds industrial copper to its list of potential contracts.
The company’s first foray into perpetual futures was with a crypto‑backed product, which received regulatory clearance in May. According to Kalshi, its inaugural perpetual contracts crossed $1 billion in notional volume within a week of launch.
Market Reaction and Competitive Dynamics
The announcement of domestic perpetual futures has unsettled traditional futures exchanges. Shares of CME Group and CBOE Global Markets fell in early June following the approval of U.S. perps, as investors worried that the new contracts could intensify competition with the established futures offerings. CME even filed a lawsuit against the CFTC in federal court over the approval of the asset class.
Despite the initial dip, CME’s stock closed up 2% on the day of Kalshi’s filing, while CBOE’s shares rose 0.2%.
Kalshi’s Vision for a Global Exchange
In a presentation at a June event, Kalshi engineer Lior Hirschfeld stated, “This is the next step towards building the largest exchange on the planet.” The company is positioning itself as a full‑featured, multi‑asset exchange that can rival traditional players by offering a diverse range of perpetual contracts.
Conclusion
Kalshi’s bid to introduce equity‑index perps signals a significant expansion of its trading platform and a bold attempt to capture a share of the growing perpetual futures market. The move will likely intensify competition with established exchanges and could reshape the landscape for futures trading in the United States.
Disclosures
CNBC and Kalshi maintain a commercial relationship that includes customer acquisition and a minority investment in the company.
