Kalshi, a prediction markets platform, is in talks with regulators to expand its never-expiring derivatives products to cover areas such as metals, foreign exchange, and energy markets. The company aims to offer perpetual futures contracts, which do not have an expiration date, allowing investors to hold positions in an asset indefinitely.
Expansion Plans
Kalshi is seeking approval from the Commodity Futures Trading Commission (CFTC) to launch perpetual futures contracts in other asset classes, including foreign exchange and energy. The company has already launched perpetual futures contracts for crypto trading, after the CFTC cleared the decks for registered U.S. trading venues to offer such contracts.
The expansion plans come as traditional derivatives exchanges grapple with the potential disruption that perpetuals pose to their core businesses. Critics have warned that perpetual futures contracts are risky for retail investors, who may not fully grasp their complexity and could be exposed to heavy losses if prices move against them.
Market Demand
According to Udesh Jha, chief risk officer at Kalshi, the company is driven by market demand, with areas such as gold and foreign exchange being of particular interest. Jha also noted that the company is eyeing potential opportunities to expand perpetual futures tied to broad-based indexes and individual stocks.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
