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Kalshi Wins FCM License to Bring Margin Trading to Institutions

CFTC approval of new rules is still required before trading can start.

Overview

  • Kalshi’s affiliate Kinetic Markets received National Futures Association approval to operate as a futures commission merchant, a key step toward offering margin to professional clients.
  • Margin trading lets traders open positions with less cash up front, which can make event hedges cheaper for funds that watch capital costs.
  • Kalshi still needs the Commodity Futures Trading Commission to approve rule changes that would permit trading without full collateral.
  • The company plans to offer the feature only to institutional accounts at first and may roll it out on new products before core event contracts.
  • The prediction-market sector is drawing big money, with Intercontinental Exchange increasing its investment in rival Polymarket to nearly $2 billion, even as state regulators say some event contracts are unlicensed gambling.