Launch HN: Kalshi (YC W19) – A regulated exchange for trading on events

Re:Launch HN: Kalshi (YC W19) – A regulated exchange for tra... by tmansour on Tuesday November 22, 2022 @04:23PM (#33711706)

It's a prediction market in some ways... though prediction markets have been historically associated with unregulated venues etc.

We're fully regulated by the federal government as a derivatives exchange, and that's a big difference in an of itself (it took us years to figure out the right model to offer derivatives dynamically, with events as underlying). Regulation allows us to plug into the financial ecosystem, and offer the asset class to hedge funds, market makers, brokers, etc.

For all intent and purposes, we're a financial exchange that offers derivatives on a broad range of things that have been offered before.

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Re:Launch HN: Kalshi (YC W19) – A regulated exchange for tra... by adamsmith143 on Wednesday November 23, 2022 @10:21AM (#33720264)

So it's a prediction market but you aren't legally allowed to be called a prediction market. In much the same way that Pyramid Schemes can operate as "Multi-Level Marketing", eventually the regulators will catch on and shut things down.

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Re:Launch HN: Kalshi (YC W19) – A regulated exchange for tra... by tmansour on Wednesday November 23, 2022 @11:09AM (#33720980)

We are perfectly allowed to be called a prediction market. That is not what I was saying in my text.

We are fully regulated by the CFTC. Our ethos has been do regulation from day 1 and we spent 3 years getting regulated before we launched a single product. Regulators are already caught up and are working with us constructively to expand this marketplace and asset class.

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