Kalshi partners with S&P Dow Jones Indices on financial-market products
Deals & M&A2 min read
In brief
- Kalshi said it partnered with S&P Dow Jones Indices to develop indices and contracts tied to stock benchmarks.
- The products would give investors and traders another way to gain exposure to those benchmarks through Kalshi markets.
- The deal follows Kalshi's launch of sector KPI markets tracking corporate metrics across industries.
According to a company press release, Kalshi disclosed on Tuesday a tie-up with S&P Dow Jones Indices aimed at developing financial-market products. Under the arrangement, the firms intend to construct indices made up of Kalshi event contracts, alongside contracts linked to the S&P 500, the Dow Jones Industrial Average and other stock indices.
In Kalshi's words, this "gives investors and traders a new way to gain exposure to these benchmarks through Kalshi markets." The deal came shortly after the exchange unveiled sector KPI markets, which follow corporate metrics across industries. Kalshi noted that such metrics might cover app downloads, foot traffic, point-of-sale data and credit card spending.
Tarek Mansour, Kalshi's chief executive and cofounder, said in the press release that breaking equities down into specific events and KPIs was one of Kalshi's strongest use cases.
This shift arrives while prediction markets broaden their offerings with contracts linked to stock indices, corporate earnings and industry performance. According to Aldrin Research, combos and other sports-related contracts make up about 85% of trading volume on these markets, and notional volume across the past month exceeded $120 billion.
Court challenges continue over whether sports event contracts are lawful, the source states. In a separate development, Rothera — the Robinhood and Susquehanna International Group joint venture — announced Wednesday that the CFTC had cleared its filing for swaps tied to Tesla KPIs. Rothera added that the approval might open the door to later contracts referencing metrics like earnings, sales and active users.