Kalshi, a prediction market platform, is now venturing into regulated perpetual futures trading for copper, a crucial industrial metal.
The proposed COPPERPERP contract will monitor the spot price of copper in U.S. dollars per pound by utilizing a price feed from Pyth Network. This blockchain-based data oracle aggregates pricing from various participants, including market makers and exchanges.
In a filing with the Commodity Futures Trading Commission to introduce the product, Kalshi states that the contract is a cash-settled perpetual futures with no fixed expiration or delivery date. It relies on a periodic funding mechanism to ensure the contract price remains connected to the underlying reference price.
“The COPPERPERP Contract is a perpetual futures contract on the spot price of copper, quoted in U.S. dollars per pound, referencing the Pyth Network XCU/USD price feed,” as mentioned in the filing.
This contract will be traded continuously on weekdays from 6:00 PM Eastern Time on Sunday to 5:00 PM Eastern Time on Friday. Additionally, it will adopt the federal spot-month position limit from the enumerated copper contract offered by CME Group’s COMEX exchange, which primarily focuses on trading metal futures and options.
“Listing a perpetual on a CFTC-registered DCM brings this economically significant activity into a regulated environment featuring trade surveillance, know-your-customer verification, risk-based margin, central clearing, and disciplinary procedures consistent with the CEA,” adds the filing.
Kalshi plans to list the contract continuously shortly after receiving CFTC approval.
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Generated Image: Midjourney
