Kalshi Files No-Expiry Oil Futures Plan as CME Challenges…
By Abdelaziz Fathi
AI summary of the source article
Kalshi has submitted a proposal to the CFTC for WTIPERP, a cash-settled WTI crude oil perpetual futures contract with no expiration date, amidst an ongoing legal challenge from CME Group over the regulatory classification of perpetual futures.
Why it matters
Kalshi's energy derivatives ambitions are aimed at allowing traders to maintain oil exposure without repeatedly closing expiring contracts and establishing new positions.
Key facts
- Kalshi submitted an application on October 20 for WTIPERP, a 100-barrel cash-settled WTI crude oil perpetual contract pending under the CFTC's 45-day approval process.
- The contract tracks a constant one-month WTI futures price calculated by Pyth Network and uses a daily funding mechanism capped at $1 per barrel.
- CME sued the CFTC on June 18, arguing that perpetual derivatives should be classified and regulated as swaps under the Commodity Exchange Act and Dodd-Frank rather than futures.
Source excerpt · FinanceFeeds
Kalshi has submitted a new West Texas Intermediate (WTI) crude oil perpetual futures contract for Commodity Futures Trading Commission (CFTC) approval, challenging established energy derivatives markets while the legality of perpetual futures remains contested in federal court.The October 20 filing identifies the product as WTIPERP, a cash-settled contract without a fixed expiration date. That dif…