Glossary › Designated contract market (DCM)

What is a designated contract market (DCM)?

Checked September 25, 2026 · 7 sources · plain-English definition, not financial advice

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.

How it works on Kalshi

The CFTC glossary defines a DCM as a board of trade or exchange designated by the CFTC to trade futures, swaps and options under the Commodity Exchange Act, and a DCM can allow both institutional and retail participants. To keep the designation, a DCM must comply with 23 core principles, including contracts not readily subject to manipulation, position limitations or accountability, daily publication of trading information and protection of market participants.

KalshiEX LLC received its order of designation on November 4, 2020 (CFTC release 8302-20), and its member agreement opens by describing Kalshi as a CFTC designated contract market. The CFTC's filing page records that on January 17, 2025 the Commission granted Kalshi's petition to permit intermediated futures trading; Kalshi's help center names Webull, Robinhood Derivatives and Direct Access USA as partner futures commission merchants.

Being a DCM makes Kalshi a self-regulatory organization: the CFTC says DCMs establish and enforce rules against fraud, manipulation and unfair trading practices, which Kalshi does through its rulebook. What to check: that you are trading on KalshiEX LLC itself or through a registered broker, and Kalshi View's state-by-state page for where you can trade.

See also

Is Kalshi legal in your state? · Is Kalshi legit? CFTC status and safety checks

Sources

  1. CFTC glossary: Designated Contract Market (DCM), U.S. Commodity Futures Trading Commission, accessed September 25, 2026
  2. Designated Contract Markets (DCMs), U.S. Commodity Futures Trading Commission, accessed September 25, 2026
  3. CFTC Designates KalshiEX LLC as a Contract Market (release 8302-20), U.S. Commodity Futures Trading Commission, November 4, 2020
  4. Designated Contract Markets (DCM) filing 42993: Kalshi, U.S. Commodity Futures Trading Commission, accessed September 25, 2026
  5. Kalshi Member Agreement, Kalshi, accessed September 25, 2026
  6. How to Become a Market Maker on Kalshi, Kalshi Help Center, April 28, 2026
  7. Understanding Prediction Markets and Event Contracts, U.S. Commodity Futures Trading Commission, accessed September 25, 2026

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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