KalshiEX LLC

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KalshiEX LLC
KalshiLogo-200px.jpg
Founded 2020
Headquarters San Francisco, CA
Key People Tarek Mansour, Founder
Products Event Contracts
Website https://kalshi.com


KalshiEX LLC, or simply Kalshi, is a U.S. Commodity Futures Trading Commission licensed Designated Contract Market that offers discrete event contracts, in which users buy and sell contracts on events based on their perceived probability.[1] It won approval from the CFTC to run a derivatives exchange in November 2020.[2]

Kalshi was funded by a pool of prominent investors including Sequoia Capital and Charles R. Schwab. It raised $30 Million in a Series A funding led by Sequoia, with participation from Charles Schwab, Henry Kravis, co-chairman & co-CEO of KKR, SV Angel, and previous investors including Neo and YC Continuity.[3]

Kalshi’s contracts are cheaper to trade than traditional derivatives. Its website advertises that it takes just three minutes for users to sign up for trading, and the exchange establishes a maximum position of $25,000 per participant.[4]

History[edit]

The company registered with the CFTC in 2020 as a designated contract market.[5]

In November of 2021, former CFTC Commissioner Brian Quintenz joined the board of directors of Kalshi.[6]

In July of 2022, Kalshi asked for permission to launch two events contracts on the outcome of the November 2022 midterm elections. CEO and co-founder Tarek Mansour said the contracts could help people hedge against election risk and paint a more accurate picture of the race. The CFTC did not approve the proposal.

On September 22, 2023, the CFTC rejected Kalshi's latest plan to offer binary contracts speculating on US congressional elections. The proposal, made in June 2023, could have allowed hedge funds and other Wall Street firms to bet as much as $100 million on which political party would control the House or Senate. The firm’s proposed contracts involved gaming that violates state laws, and such contracts are “contrary to the public interest,” the CFTC said.[7]

Products and Services[edit]

Kalshi offers trading, hedging, and forecasting.[8]

Key People[edit]

References[edit]