Kalshi Seeks Approval for Stock Perps, Raising Regulatory Concerns

Kalshi, a prediction-market operator, is seeking US approval for around 60 perpetual futures tied to stocks and ETFs. This move aims to bring 24/7 crypto-style trading to major equities.

The contracts would be linked to individual stocks like Tesla and Apple, as well as exchange-traded funds, without expiration dates. Perpetual futures allow traders to take leveraged positions on whether an asset will rise or fall without a specific end date. Funding payments between traders help keep the contract near the price of the underlying asset.

Citadel Securities has raised concerns about the regulatory approach, warning that equity-linked perpetual futures outside SEC oversight could create a 'parallel shadow market' separated from surveillance systems covering US stocks and options.