After Approval at DC District Court, Appeals Court Halts Trading Event Contracts Based on Election Outcomes
By: Cliff C. Histed, Cheryl L. Isaac, and Wiley F. Cole
On 12 September 2024, the US District Court for the District of Columbia ruled in KalshiEx LLC v. CFTC that designated contract markets may list event contracts whose payouts are tied to the outcome of elections. The court’s order, which granted summary judgment to KalshiEx LLC (Kalshi), held that the Commodity Futures Trading Commission’s (CFTC) interpreted its own regulations too broadly and that registered derivatives exchanges such as Kalshi may offer election outcome event contracts for trading.
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