Kalshi Plans 24/7 Stock Trading for Tesla and Nvidia Using Perpetual Futures
Kalshi eyes 24/7 trading for major U.S. stocks
Prediction market operator Kalshi is seeking regulatory approval to launch 24/7 trading for approximately 60 stocks and exchange-traded funds (ETFs), including major companies like Tesla, Apple, and Nvidia. The proposed products would use perpetual futures, a popular crypto-style trading tool that allows for continuous trading even when traditional stock markets are closed.
If approved, these would be the first regulated single-stock perpetual futures offered in the United States. This move would bring a trading product that is currently a cornerstone of the crypto industry into the traditional equities market.
Key details of the perpetual futures proposal
- Kalshi plans to offer around 60 different perpetual futures contracts linked to individual stocks and ETFs.
- The contracts would allow for leveraged trading, where investors use borrowed money to increase the size of their positions.
- Unlike traditional futures, these contracts do not have an expiration date, allowing traders to hold positions as long as they wish.
- The products would trade around the clock, including nights and weekends when the Nasdaq and other major exchanges are shut.
Understanding perpetual futures in the crypto market
Perpetual futures, often called "perps," were first introduced by the crypto exchange BitMEX in 2016 and have since become one of the largest segments of the crypto business. These contracts track the price of an underlying asset, such as Bitcoin, without ever expiring.
To keep the price of the perp close to the actual market price of the asset, traders make regular payments to one another. This mechanism ensures that the contract does not drift too far from the value of the stock or token it represents. Newer crypto platforms, such as Hyperliquid, already offer these products for hundreds of different tokens at any hour of the day.
Citadel Securities warns of potential 'shadow markets'
The proposal has met opposition from the prominent trading firm Citadel Securities. In a letter sent to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), the firm argued that products tied to public companies should remain under SEC oversight.
Citadel Securities warned that allowing these contracts to trade outside of standard equity regulations could create a "parallel shadow market." The firm expressed concern that this could lead to weaker protections against insider trading and market manipulation. For example, an employee with private information could trade a perpetual contract while the official stock market is closed for the weekend.
The debate over regulatory oversight
A central issue for regulators is whether a perpetual contract tied to a stock should be treated as a futures product or a security. Futures are typically overseen by the CFTC, while stocks and related options are regulated by the SEC.
Kalshi previously won CFTC approval for a Bitcoin perpetual contract in May, which the regulator classified as a futures contract. However, the CFTC warned at the time that this classification might not apply to all asset classes and that products tied to other assets would require individual reviews.
What is confirmed
- Kalshi has announced plans to seek approval for roughly 60 stock and ETF perpetual futures.
- The proposed list of companies includes Tesla, Nvidia, and Apple.
- Kalshi already holds CFTC approval for a Bitcoin perpetual contract.
- Citadel Securities filed a formal letter of opposition to the SEC and CFTC on Thursday.
Why this matters for traditional markets
The introduction of 24/7 stock perps would change how investors interact with traditional companies. A Tesla perpetual contract could provide a real-time view of what traders believe the company is worth during hours or days when the official stock market is closed. This could lead to price volatility or significant price gaps when the traditional Nasdaq market eventually reopens.
