Kalshi seeks CFTC approval for perpetual WTI crude contract - Bloomberg

Investing.com -- Kalshi has filed a proposal with the Commodity Futures Trading Commission to launch an oil-linked futures contract that never expires, according to reporting from Bloomberg, signaling a major move to broaden its energy derivative offerings. If approved, the contract tied to the West Texas Intermediate benchmark would mark the first crude-linked perpetual future to trade on a regulated U.S. exchange.

The application triggers a mandatory 45-day review window for the CFTC to approve or disallow the derivative. Unlike standard event contracts that exchanges can self-certify, perpetual futures face heightened regulatory scrutiny that requires formal commission oversight.

The filing comes amid heightened market volatility driven by regional conflicts that have turbocharged demand from institutional and retail speculators seeking commodity exposure. WTI crude futures have traded across a broad $60-a-barrel range this year, creating fertile ground for continuous risk-management instruments.

Kalshi's initiative gains additional strategic weight following CME’s decision to shelf plans for a round-the-clock crude contract after intense industry pushback. While CME’s withdrawn proposal sought nonstop trading anchored to standard expiration cycles, Kalshi is pursuing a 24-hour, five-day-a-week model designed to address regulatory concerns while eliminating expiration entirely.

The move deepens an ongoing competitive rift between established derivatives giants and prediction market platforms. CME leadership has repeatedly criticized perpetual derivatives, going so far as to initiate legal action against the CFTC earlier this year over approval for Kalshi's crypto-linked perpetual contracts.

For Kalshi, expanding into crude represents a logical progression as its commodity offerings gain operational momentum. Commodities volume on the platform approached $400 million by early September, pacing nearly four times faster than its cryptocurrency products did at a comparable stage of development.

Original Article

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