Kalshi Inc. has filed a proposal with the Commodity Futures Trading Commission for a never-expiring oil-linked futures contract tied to the West Texas Intermediate benchmark. If approved, this would mark the first crude-linked perpetual future available on a regulated US trading platform. The CFTC has 45 days to review the application.
Perpetual futures, or perps, cannot be self-certified by exchanges due to regulatory scrutiny. This development aligns with broader efforts to facilitate trading in real-world assets. The ongoing Iran conflict has increased demand from institutional and individual speculators looking to profit from volatile commodity prices.
West Texas Intermediate futures have traded within a roughly $60 per barrel range year-to-date. Kalshi's initiative comes as competitors face setbacks; the Chicago Mercantile Exchange recently shelved plans for a round-the-clock oil contract following industry pushback and CFTC review regarding weekend trading compatibility. Unlike the CME's withdrawn nonstop contract, Kalshi's product aims to trade 24 hours a day, five days a week without expiration.
CME leadership has publicly opposed perps, even suing the CFTC earlier this year over crypto-linked versions. Kalshi designed its 24/5 structure to address community regulatory concerns. Commodities markets on the platform reached nearly $400 million in trading volume early this year, almost four times the crypto volume seen at a similar lifecycle stage.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing