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Kalshi filed with the CFTC seeking approval to offer margin/leverage on its event contracts, a regulatory step that could expand its prediction-market offering.
Kalshi filed with federal regulators on Tuesday to seek approval to offer leverage on event contracts, a practice already common on Wall Street for stocks and futures. The filing with the Commodity Futures Trading Commission, the federal regulator for event contracts, comes from Kalshi Klear, the company's internal clearing house. Kalshi already provides leverage on its perpetual futures contracts but has yet to receive the same approval for its prediction markets, where all event contracts on regulated U.S. exchanges are currently entirely collateralized. A Kalshi spokesperson told CNBC the company would avoid offering margin on its sports event contracts as well as its culture and mention markets, and said marginable contracts, if approved, would be accessible only to self-clearing members with direct relationships to Kalshi Klear that meet certain capital requirements. Kalshi also said it is seeking a system in which capital requirements to obtain leverage increase as event contracts near their expiry date, a change it says would make longer-dated prediction markets more attractive to institutional traders.
Kalshi filed with the CFTC seeking approval to offer margin/leverage on its event contracts, a regulatory step that could expand its prediction-market offering.