Kalshi Approved to Operate as Futures Commission Merchant Through Kinetic Markets

According to Bloomberg, the approval lets Kalshi offer margin trading through affiliate Kinetic Markets LLC, a step aimed at improving capital efficiency and drawing institutional participation.

Summary

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Terms & Concepts
  • Futures commission merchant: A regulated firm that accepts and handles orders and customer funds for futures and related derivatives trading.
  • Margin trading: Trading with borrowed funds, allowing participants to post only part of a position’s full value.
  • Prediction market: A marketplace where participants trade on the outcome probabilities of future events.