Kalshi seeks approval to bring crypto-style perps to stocks and copper

Kalshi is trying to take one of crypto’s most distinctive trading products into traditional markets. On August 18, the federally regulated exchange submitted two proposals to the CFTC for approval of perpetual futures contracts based on a major US stock index and copper. If approved, the contracts would bring a structure that originated in the cryptocurrency area to stocks and commodities.

This is important as perpetual futures, or perps, have become a fundamental part of crypto trading. Researchers from Cornell University estimate that perpetual futures comprise 93% of the entirety of crypto derivatives trading. The concept behind their popularity is simple. Traders can maintain their leveraged trades without the need to roll the contracts at expiration, and at the same time receive regular funding payments which keep the prices aligned with the underlying market.

The idea behind perpetual futures is not new. Economist Robert Shiller proposed a structure for perpetual futures trading back in 1993.

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