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CFTC directs Kalshi to honour Michigan trades after court-ordered unwinding

Regulation

The US Commodity Futures Trading Commission stayed Kalshi’s emergency rule proposal and directed the exchange to process Michigan contracts under its normal practices. Kalshi had filed the proposal on 12 July to unwind positions and refund customers following a state court ruling. The CFTC acted after Kalshi had already unwound the trades, while the company said the court order covered sports positions matched between Michigan traders and Kalshi Trading LLC.

The conflicting federal directive and Michigan court orders leave Kalshi’s handling of executed sports contracts in question.

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Regulation

CFTC orders exchanges to end US geofencing within 30 days

The Commodity Futures Trading Commission ordered designated contract markets to end US geofencing that conflicts with impartial-access requirements within 30 days, or explain why they cannot comply. The order puts exchanges offering sports-event contracts at odds with court orders restricting Kalshi in several states and on tribal lands. Chairman Michael S. Selig said derivatives markets must operate nationally.

Within 30 days, designated contract markets must end geofencing restrictions in the U.S. that violate “impartial access requirements,” or give reasons they cannot comply, the CFTC has ordered. CFTC Chairman Michael S. Selig said in a statement that derivatives markets "must operate on a uniform basis at a national scale" to serve the purposes of the Commodity Exchange Act.

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