Kalshi seeks CFTC approval to offer margin trading on prediction markets
Prediction market platform Kalshi has filed with the Commodity Futures Trading Commission to allow margin trading on event contracts, seeking to attract institutional traders by permitting positions to be bought with borrowed funds.
Prediction market platform Kalshi has filed with the Commodity Futures Trading Commission seeking approval to offer margin trading on event contracts, which would allow users to trade positions using borrowed funds. The filing was submitted by Kalshi Klear, the company's internal clearing house, in what has been described as a first for regulated U.S. event contract exchanges.[2][3][6][7]
The proposal targets institutional participation and aims to help market makers deepen liquidity by introducing leverage, a practice already prevalent on Wall Street for stocks and futures. Kalshi noted that institutional traders require leverage to take positions in longer-dated event contracts.[1][4][5][8]
Under the proposed framework, margin requirements would be set conservatively above regulatory minimums. In addition, the margin model excludes markets tied to sports, culture, and mentions.[1]
Key facts
- Kalshi has filed with the Commodity Futures Trading Commission (CFTC) to request approval for margin trading on event contracts.
- The regulatory filing was made by Kalshi Klear, Kalshi's internal clearing house.
- Margin trading would permit users to trade and take prediction market positions using borrowed funds.
- The margin-trading proposal is described as a first for regulated U.S. event contract exchanges and prediction markets.
- The filing targets institutional traders and market makers, who Kalshi states need leverage to participate in longer-dated event contracts.
- Leverage is already widely used on Wall Street for trading stocks and futures.
- The proposed margin framework sets requirements above regulatory minimums and excludes sports, culture, and mentions markets.
Sources · 6 sources
- WI
Whale Insider@WhaleInsiderPost on X ·
JUST IN: Kalshi seeks approval for a prediction-market margin model designed for institutional trading. The proposed framework would bring the capital efficiency institutions are accustomed to, helping market makers deepen liquidity. It sets conservative margin requirements above regulatory minimums and excludes sports, culture, and mentions markets. This is a first for prediction markets.
Open source - CO
CoinMarketCap@CoinMarketCapPost on X ·
LATEST: 🇺🇸 Kalshi has filed with the CFTC to allow margin trading on event contracts, which would let select traders buy prediction market positions with borrowed funds. https://t.co/UgYTWr6srT
Open source - QU
Quartz@qzPost on X ·
Kalshi wants to let traders borrow money to bet on world events Kalshi has asked federal regulators to allow margin trading on its prediction markets — a first for regulated U.S. event contract exchanges. The move is designed to pull in #Kalshi #PredictionMarkets #MarginTrading https://t.co/rD4UmuoaUX
Open source - QU
Quartz@qzPost on X ·
Kalshi is asking federal regulators to let users borrow money to trade on its prediction markets: The filing targets institutional traders, who the company says need leverage to participate in longer-dated event contracts https://t.co/e2jSvVJa95 https://t.co/I27LW4Kd5Z
Open source - CB
Crypto Briefing@Crypto_BriefingPost on X ·
📊NEW: Kalshi is seeking CFTC approval to introduce leverage to its prediction markets, targeting greater institutional participation. https://t.co/ejG0YDwrEy
Open source - CN
CNBC@CNBCPost on X ·
Kalshi asks CFTC to allow margin trading on its platform, letting users buy with borrowed funds https://t.co/gvsPScCzWS
Open source - TE
Techmeme@TechmemePost on X ·
Kalshi Klear, the company's internal clearing house, files for CFTC approval to add margin trading as it seeks to attract institutional liquidity (@giangiuliodavis / CNBC) (Visit Techmeme dot com for the link and full context!)
Open source - CN
CNBC@CNBCPost on X ·
Prediction market platform Kalshi filed on Tuesday with federal regulators to seek approval to offer leverage on event contracts, a prevalent practice already on Wall Street for stocks and futures. Read more: https://t.co/2XFGucOOcK https://t.co/LNfJZOvcFm
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