Kalshi Gains CFTC Approval for S&P 500 Perpetual Futures

Kalshi, a prediction market platform, has secured approval from the US Commodity Futures Trading Commission (CFTC) to launch S&P 500 perpetual futures. This move expands Kalshi’s derivatives business beyond cryptocurrency into traditional stock markets, positioning it closer to established players like CME Group and Cboe Global Markets.

The CFTC approved the US500PERP contract on October 3, classifying it as a financial instrument tied to an equity index. The product tracks the MerQube US Large Cap Index, representing 500 large US companies. Unlike traditional futures, Kalshi’s perpetual contract has no fixed expiration date and uses periodic funding payments to align its price with the underlying index.

Kalshi’s S&P 500 contract was initially filed in August and will be cleared through Kalshi Klear, its CFTC-registered clearing organization. This approval follows the company’s May approval for Bitcoin perpetual futures, marking another step in its expansion into traditional financial markets.

The perpetual structure offers traders long or short exposure without holding the underlying stocks, providing an alternative to conventional futures contracts. This move highlights the growing acceptance of perpetual contracts beyond crypto into traditional financial assets, presenting new competitive challenges for exchanges.