Release Number 8578-22
CFTC Announces Review and Public Comment Period of KalshiEx Proposed Congressional Control Contracts Under CFTC Regulation 40.11
August 26, 2022
Washington, D.C. — The Commodity Futures Trading Commission today announced the beginning of a review of KalshiEX, LLC’s (KalshiEx) proposed contracts on which political party will be in control of each chamber of the U.S. Congress (Congressional Control Contracts) under CFTC Regulation 40.11(c). KalshiEX, a designated contract market, voluntarily submitted the Congressional Control Contracts for CFTC review.
As described in the submission, the contracts are cash-settled, binary contracts based on the question: “Will <party> be in control of the <chamber of Congress>?” and settle based on the party affiliation of the Speaker of the U.S. House of Representatives or the President Pro Tempore of the U.S. Senate.
The CFTC has determined the Congressional Control Contracts may involve, relate to, or reference an activity enumerated in CFTC Regulation 40.11(a) and section 5c(c)(5)(C) of the Commodity Exchange Act and will therefore commence a review pursuant to CFTC Regulation 40.11(c).
The CFTC also seeks public comment on specific questions related to the Congressional Control Contracts during a 30-day public comment period. The questions for submitting comments are available here. The 30-day public comment period ends on September 25, 2022.
The Commission will endeavor to complete its review and issue an order with respect to this matter by October 28, 2022 or as expeditiously as is practicable while ensuring an adequate time for public notice and comment and Commission and staff review of the submission as well as Commission review of public comments received.
KalshiEX’s publicly-filed submission, which provides detailed information about the contracts, is available here.