Kalshi Transfer Portal Controversy Raises Questions On Market Selection, CFTC Insider Trading Rules
Kalshi’s decision to self-certify a contract on the NCAA transfer portal generated a major reaction, even though it now seems it may never actually take bets on the topic.
Amid the backlash, Kalshi announced it had "no immediate plans” to let people bet on who enters the portal, and noted that not every contract that is self-certified goes up on its site.
But the controversy may raise questions about both Kalshi’s listing procedures and how rules about trading on insider knowledge work in CFTC-regulated prediction markets.
Why did Kalshi self-certify portal market?
It’s not immediately clear what steps led to the contract being self-certified, particularly if there really were no immediate plans to actually offer the contract to customers.
Kalshi takes suggestions for markets from its users via Discord, its social media channels, and a form on its website. It doesn’t self-certify every market, but the transfer portal filing raises questions about the steps involved when Kalshi decides to put up a new contract.
Just a day before the self-certification document was filed, a user on Kalshi’s "market suggestions” Discord channel suggested a series of bets on whether certain players would enter the transfer portal, as well as the next destination for players who have already signaled intent to transfer.
- https://www.ingame.com/kalshi-transfer-portal-fiasco-raises-questions/