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      Kalshi Seeks CFTC Approval for Margin Trading on Prediction Market Platform

      Kalshi, a leading prediction market platform based in the United States, has submitted a request to the Commodity Futures Trading Commission (CFTC) for approval to offer margin trading. This initiative, filed on September 22, aims to allow select institutional traders to engage in event contracts without the need to post full collateral upfront, potentially transforming how Wall Street interacts with prediction markets.

      Currently, institutions must provide full collateral for their positions on Kalshi. For instance, hedging a $100 position requires a $100 deposit. With margin trading, institutions would only need to post a fraction of the total contract value, enhancing capital efficiency. The initial rollout will focus on longer-dated event contracts, deliberately excluding markets related to sports, culture, and entertainment.

      Kalshi's affiliate, Kinetic Markets LLC, secured registration with the National Futures Association as a futures commission merchant earlier in March 2026. The company has been in discussions with the CFTC regarding its margin trading strategy since the beginning of the year, and the recent filing marks a formal request for regulatory approval. The CFTC must approve changes to Kalshi's rulebook before margin trading can commence.

      In 2026, Kalshi raised over $1 billion in funding, boosting its valuation to approximately $22 billion, with monthly trading volumes reaching a record $33 billion in June. As margin trading becomes a standard feature in traditional derivatives markets, Kalshi's move may enhance its competitive position against rivals like Polymarket, which is also exploring regulatory options in the U.S. The CFTC's assessment of Kalshi's proposed safeguards will be crucial in determining the outcome of this request.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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