Glossary › Derivatives clearing organization (DCO)
Checked September 25, 2026 · 7 sources · plain-English definition, not financial advice
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.
The CFTC describes a DCO as an entity that lets each party to a trade substitute the credit of the DCO for the credit of the parties, through novation or otherwise, and that arranges the settlement or netting of obligations. A DCO that clears futures, options on futures or swaps must register with the CFTC first.
Kalshi's contracts clear through Kalshi Klear LLC, an affiliate that replaced MIAXdx after CFTC approval, according to Kalshi's help center. The CFTC's list shows Kalshi Klear LLC registered on August 28, 2024, permitted to clear futures, options on futures and swaps. Under rule 6.1 of Kalshi's rulebook, once two orders match, the clearinghouse becomes the seller to the buyer and the buyer to the seller.
Why it matters: participant funds are held at the clearinghouse under its rulebook, wire deposits go to an account in Kalshi Klear LLC's name, and any interest on balances is paid by Klear at a floating rate under rule 8.1. Kalshi's member agreement lets Kalshi use any CFTC-registered DCO in good standing and move your positions and funds if it changes clearinghouses.
Is Kalshi legit? CFTC status and safety checks · Is Kalshi legal in your state?
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.
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