TLDR
- Kalshi filed two requests with the CFTC on August 18 for new perpetual futures contracts.
- One contract, called US500, would track a stock index of 500 large U.S. companies.
- The other, COPPERPERP, would track copper prices using a Pyth Network price feed.
- Neither product has been approved yet, and Kalshi says trading will not start until the CFTC signs off.
- The filings come as CME Group’s lawsuit against the CFTC over crypto perpetual futures remains unresolved.
Kalshi filed two product submissions with the Commodity Futures Trading Commission on August 18. The filings ask for permission to launch perpetual futures tied to a broad U.S. stock index and to copper.
Both products were submitted through the CFTC’s voluntary review process under Regulation 40.3. Kalshi said it plans to list the contracts once approval comes through.
This means neither product can start trading based on the filings alone. The CFTC still has to review and sign off first.
What the US500 Contract Would Track
The proposed US500 contract would follow the MerQube US Large Cap Index. That index covers 500 of the largest companies listed and based in the United States, weighted by market value.
The contract would be cash settled with no fixed expiration date. A funding payment between long and short traders would keep the price close to the index.
One full contract would equal the index level multiplied by $1. Kalshi proposed a $25 million position limit based on market value, along with price bands and order limits to manage sudden price swings.
Kalshi argues the product falls under the CFTC’s sole authority because it tracks a broad securities index rather than individual companies.
How the Copper Contract Would Work
The COPPERPERP contract would track copper’s price in dollars per pound. It would use Pyth Network’s XCU/USD price feed as its reference.
Each full contract would represent 1,000 pounds of copper. A price move of half a cent per pound would change a full contract’s value by fifty cents.
Kalshi proposed trading hours running from Sunday evening through Friday afternoon Eastern time, staying closed over weekends. The filing sets a $5 million position limit and caps positions at 25,000 contracts, based on rules tied to the existing COMEX copper contract.
If the Pyth feed goes stale or the market closes, the index would use the last available price. Kalshi said extra risk controls could kick in during those periods.
The CFTC approved Kalshi’s Bitcoin perpetual futures contract back in May. At the time, the regulator said products tied to other asset classes would get reviewed case by case, since market structures differ.
Copper and stock index products raise different questions than Bitcoin did. Copper already has fixed trading hours through established futures markets, and stock indexes depend on shares that do not trade around the clock.
Meanwhile, CME Group sued the CFTC in June. The lawsuit argues that perpetual futures are legally swaps, not futures, and asks a court to undo the CFTC’s approval of Kalshi’s Bitcoin product.
The CFTC has called the lawsuit frivolous and disputes CME’s position. The case has not been resolved, and no court has overturned the existing approval.
CME switched law firms in July due to conflicts the departing firm cited with other clients, according to Reuters. That change did not end the legal fight.
The CFTC has not given a timeline for deciding on the US500 or copper filings. Its decision will show whether the agency is willing to expand its perpetual futures approach beyond crypto into stock and commodity markets while the CME case continues.
