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Kalshi asks CFTC to allow margin trading on prediction markets
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Kalshi, the dominant U.S. prediction market platform, filed on September 22, 2026, with the Commodity Futures Trading Commission (CFTC) seeking approval to offer margin trading on its event contracts. The filing, made through its internal clearinghouse Kalshi Klear, aims to attract institutional traders by making longer-dated prediction markets more attractive. Under the proposed tiered structure, collateral requirements would increase as contracts approach settlement. Leverage would be restricted to self-clearing members meeting specific capital thresholds, and would not apply to sports, culture, or 'mention' markets. Kalshi already offers leverage on perpetual futures but not on prediction markets. The move follows broader industry efforts, including rival Polymarket's July moves to obtain regulatory licenses for margin trading. Kalshi accounts for over 90% of U.S. prediction market activity, with annualized trading volume rising from $52 billion to $178 billion over six months. The company has also expanded internationally through partnerships with Alpaca and Wealthsimple. CNBC, which reported on the filing, holds a minority stake in Kalshi.
Source report
Source: Quartz Author: Cris Tolomia
Kalshi filed on Tuesday with the Commodity Futures Trading Commission (CFTC) seeking approval to offer leverage on its event contracts. The company says the move is aimed at drawing institutional traders to its prediction markets, according to CNBC.
The filing was submitted by Kalshi Klear, the company's internal clearinghouse. With margin trading, a trader uses borrowed funds to gain exposure to more of an asset than their own cash would cover — a standard practice in equities and derivatives markets, though one not yet permitted on regulated U.S. event contract exchanges, where all positions are currently fully collateralized.
Key Details
- Tiered Structure: In a memo provided to CNBC, Kalshi said leverage would make longer-dated prediction markets more attractive to institutions. The company also described plans for a tiered structure in which the collateral needed to maintain a leveraged position would rise the closer a contract gets to settling.
- Restricted Access: Access to leverage, if the CFTC approves, would be restricted to self-clearing members who satisfy specified capital thresholds given their direct clearing relationships with Kalshi Klear, a company spokesperson confirmed.
- Exclusions: Kalshi said it would not offer margin on sports event contracts, or on its culture and "mention" markets.
Existing Leverage Products
Leverage is already a feature on Kalshi's perpetual futures products, but the company has not yet cleared the regulatory bar to extend it to its prediction market offerings.
Broader Industry Context
The push for margin access reflects a broader effort by prediction market platforms to attract institutional participation. Polymarket, a rival, made moves in July to obtain regulatory licenses that would eventually allow it to offer margin trading on event contracts in the U.S., according to CNBC.
Recent Expansion Moves
Tuesday's filing is the latest in a string of expansion moves by Kalshi:
- Professional Trading Terminal: The platform launched a professional trading terminal for its most active users, offering features including deeper order book visibility and risk management tools for perpetual positions.
- Market Dominance: The company accounts for more than 90% of prediction market activity in the U.S., with annualized trading volume climbing from $52 billion to $178 billion over six months.
- International Expansion: Kalshi partnered with brokerage infrastructure startup Alpaca to make its event contracts available to users outside the U.S., and earlier partnered with Canadian financial firm Wealthsimple to bring its markets to Canada.
Disclosure
CNBC, which reported on the filing, holds a minority stake in Kalshi and has a customer acquisition arrangement with the company.
Source
Yahoo FinanceWestern