Prediction markets platform Kalshi is expanding further into traditional derivatives by seeking regulatory approval for a copper perpetual futures contract. The company has filed an application with the Commodity Futures Trading Commission (CFTC) to launch the product.
The proposed contract, designated as COPPERPERP, would track the spot price of copper in U.S. dollars per pound. According to the regulatory filing, the product will utilize a price feed from Pyth Network, a blockchain-based data oracle that aggregates pricing data from various market participants and exchanges.
Designed as a cash-settled perpetual futures contract, the offering features no fixed expiration or delivery date. It relies instead on a periodic funding mechanism intended to keep the contract price tethered to the underlying reference price.
If approved, the contract would trade continuously on weekdays, running from 6:00 PM Eastern Time on Sunday to 5:00 PM Eastern Time on Friday. Kalshi stated that the contract would also adopt the federal spot-month position limit established by the enumerated copper contract offered on CME Group's COMEX exchange.
In its filing, Kalshi emphasized that listing the perpetual contract on a CFTC-registered designated contract market would introduce traditional regulatory safeguards. These include trade surveillance, know-your-customer verification, risk-based margining, central clearing, and disciplinary procedures aligned with the Commodity Exchange Act.
Kalshi intends to list the copper perpetual futures contract on a continuous basis shortly after receiving approval from the CFTC.
