(Corrects headline to say the filing is for perpetual futures related to a stock index, not the S&P 500; removes reference to S&P 500 from paragraph 1)
Aug 18 (Reuters) – Prediction market startup Kalshi filed with the U.S. 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 U.S. 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.
(Reporting by Pritam Biswas in Bengaluru; Editing by Tasim Zahid)
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