Kalshi files for stock index perpetuals in challenge to traditional exchanges

(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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