Kalshi seeks CFTC approval for perpetual oil futures

Prediction market platform Kalshi is preparing to ask US regulator the CFTC for approval to offer a perpetual futures contract on WTI crude oil. If the application succeeds, it will be the first regulated perpetual oil futures contract on a US exchange. The platform, which has a market value of $22 billion, wants to file the contract as soon as next week. Bloomberg reports.

In short:

• Kalshi wants CFTC approval for a perpetual futures contract on WTI oil, a first in the US.
• The contract will be tradable 24 hours a day, five days a week, rather than around the clock.
• The CFTC is critical of 24/7 trading in energy products, which explains the choice of limited opening hours.

First regulated perpetual oil futures in the US

Perpetual futures are contracts without an expiry date, a structure that has been common in the crypto world for years. Kalshi now wants to bring this concept to the regulated US commodities market, with WTI crude oil as the underlying product.

If the CFTC approves the application, Kalshi will be the first US exchange to offer such a contract. The platform is already under CFTC oversight and is therefore one of the larger regulated prediction markets in the United States.

No 24/7 trading due to regulator

Although perpetual futures in the crypto world are typically traded around the clock, Kalshi is opting for a more limited approach: 24 hours a day, five days a week. That choice is linked to the CFTC’s reluctance regarding uninterrupted trading in energy products.

The debate over 24/7 trading is playing out more broadly in the financial sector. Pressure to extend trading hours is also growing on traditional exchanges. By choosing five trading days instead of seven, Kalshi is trying to meet the regulator halfway without letting go of the idea of continuous availability.