The Commodity Futures Trading Commission’s (CFTC’s) wide-ranging request for comment on proposed rules for event contracts is likely to be a hugely consequential event for prediction markets.
But there is another CFTC request for comment that could generate a significant impact on the industry, or some participants at least, such as Kalshi.
The request asks about “Direct Clearing of Derivatives by Retail Investors by Designated Clearing Organizations (DCOs). ” The consultation closed on Feb. 2, but any steps that may follow have not been announced yet.
A DCO handles the movement of money and associated paperwork behind every trade on a designated contract market (DCM).
