Clear Street, Marex to Open Kalshi Markets to Hedge Funds

Clear Street and Marex Group are preparing to provide hedge funds and other institutional clients with access to Kalshi’s prediction markets. The contracts cover economic, political and other real-world events.

Clear Street expects to begin clearing Kalshi trades in late March. Marex plans to offer access in the following months. Both firms are responding to requests from large investment funds seeking to trade event contracts through established financial intermediaries.

Large hedge funds have approached Marex about access to the markets, according to Thomas Texier, the firm’s global head of clearing. Marex is also examining whether prediction contracts could help hedge its own exposures.

Prediction markets allow participants to buy and sell contracts based on whether a specified event will occur. Contracts can cover interest-rate decisions, election results, economic data and other outcomes that may affect financial markets.

Kalshi Chief Executive Tarek Mansour expects institutional participation to grow throughout 2026. Major financial news organisations are already using prediction-market data, he said. Kalshi is presenting its event contracts as sources of forward-looking information and potential tools for managing investment risk.

Regulatory uncertainty remains an issue for wider adoption in the United States. State regulators have challenged prediction-market operators under gambling laws. Market participants have also raised questions about insider trading and the legal classification of event contracts.

The Commodity Futures Trading Commission has asserted primary authority over prediction markets. The Securities and Exchange Commission has indicated interest in the sector, leaving uncertainty over how the contracts should be supervised.

Executives at Nasdaq and CME Group have called for clearer rules. Access through prime brokers such as Clear Street and Marex would allow institutional investors to use existing trading, clearing and risk-management arrangements.