Kalshi Seeks CFTC Approval for Event Contract Margin Trading
Kalshi, a crypto and derivatives exchange, has requested approval from the Commodity Futures Trading Commission (CFTC) to introduce margin trading for eligible event contracts. The company's proposed framework would allow qualified participants to trade these contracts with lower capital requirements.
The eligible contracts would cover economic, financial, political, commercial, and other verifiable events, excluding sports-related events and culture markets. Access to the program would be limited to registered futures commission merchants or approved self-clearing members, targeting hedge funds and professional trading firms rather than retail accounts.
Kalshi's proposed margin framework would use a one-day risk period, maintaining a confidence level above 99% as required by CFTC regulations. The company has tested its model using historical data and aims to prevent excessive collateral reductions during less volatile periods.