Kalshi seeks CFTC approval for US500, copper perps

Kalshi filed two product submissions with the Commodity Futures Trading Commission (CFTC) on August 18, seeking approval to launch perpetual futures contracts tied to the US500 index and copper. The US500 contract would track the MerQube index of 500 U.S.-listed companies, weighted by market capitalization, with a cash settlement mechanism and no fixed expiration. Each contract’s value changes by $1 for every one-point index movement, with a $25 million position accountability level. Kalshi also proposed a $5 million position accountability level for the copper perpetual contract (COPPERPERP), referencing Pyth’s XCU/USD feed for 1,000 pounds of copper, with a minimum trade size of 0.001 contracts and a $0.50 value change per $0.0005 price movement. Trading hours run from 6 p.m. ET Sunday to 5 p.m. ET Friday, with risk controls like price bands and order limits. CME Group is challenging the CFTC’s classification of perpetual contracts as futures under federal law, arguing they are swaps. The CFTC’s approval process is voluntary under Regulation 40.3, and neither product can trade until authorized. Kalshi’s Bitcoin perpetual futures were approved in May, but the CFTC’s review for US500 and COPPERPERP will assess whether the agency can extend its framework to traditional markets while the lawsuit over perpetual classification remains unresolved.