Checked September 25, 2026 · 6 sources · plain-English definition, not financial advice
CFTC: The Commodity Futures Trading Commission, the US federal agency that regulates derivatives markets; it designated Kalshi as a contract market in 2020.
How it works on Kalshi
The CFTC is the federal regulatory agency created in 1974 to administer the Commodity Exchange Act, in the words of its own glossary. Its stated mission is to promote the integrity, resilience and vibrancy of the US derivatives markets through sound regulation.
On November 4, 2020 the CFTC issued an order designating KalshiEX LLC as a designated contract market (release 8302-20). Kalshi's help center says it is regulated by the CFTC as a DCM, and its contracts clear through Kalshi Klear LLC, which the CFTC lists as a derivatives clearing organization registered on August 28, 2024.
The CFTC's guide to prediction markets says regulated exchanges must follow core principles against manipulation and insider trading, do not take a side of your trade, and owe customers clear contract terms, fees and settlement rules; you can also file a complaint with the CFTC. Where Kalshi's contracts are available is a separate, state-by-state question.
Related terms
Designated contract market (DCM): An exchange the CFTC has designated to list futures, options or swaps under the Commodity Exchange Act; KalshiEX LLC has been one since 2020.
Derivatives clearing organization (DCO): A CFTC-registered clearinghouse that stands between buyers and sellers and settles their trades; Kalshi's is its affiliate, Kalshi Klear LLC.
Event contract: A contract that pays a fixed amount, $1 on Kalshi, if a stated event happens and nothing if it does not; its price reflects the market's odds.
Market rules and contract terms: The binding terms of a Kalshi market: what is measured, the source, the timeline and when it pays, all under the KalshiEX rulebook.
Checked September 25, 2026. Kalshi changes fees, rules, funding options and limits; the market's rules, the order ticket and Kalshi's help center are the final word.