Kalshi said on September 23 that the Commodity Futures Trading Commission had not contacted the company and that it did not believe a formal examination was under way over unusual trading in
Kalshi said on September 23 that the Commodity Futures Trading Commission had not contacted the company and that it did not believe a formal examination was under way over unusual trading in its Ether perpetual contracts. The company attributed the recurring activity to liquidity-incentive programmes for market makers, rather than to trading-volume rewards.
The denial followed data analysis by CoinDesk that found a substantial share of sampled Ether perpetual volume clustered near a single price level. Kalshi’s account is that the repeated transactions reflect how fixed-size resting orders interact with its liquidity arrangements.
In comments reported by CoinDesk, Kalshi said the CFTC had not approached the company as of September 23 and that it therefore did not believe a formal examination was under way.
The statement speaks to whether Kalshi had received contact from its federal regulator, not independently to the CFTC’s internal view of the trading. Kalshi attributed the activity to incentive programmes that compensate liquidity providers for maintaining orders.
CoinDesk’s analysis described repeated Ether trades with a nearly fixed dollar value rather than simply high contract turnover. The number of contracts changed as Ether’s underlying price moved.
CoinDesk examined 3,450 Ether-perpetual trades across 23 one-hour samples collected between September 17 and September 20. Trades executed within $2 of $5,499 accounted for $7.7 million of the $13.5 million in sampled volume, or 57%.
The concentration near that level provides a more specific picture than an aggregate volume figure. More than half of the volume in the sample was tied to trades occurring in a narrow $4 price band around $5,499, according to the outlet’s analysis.
CoinDesk reviewed 46 hourly samples spanning June 19 to September 20 and reported recurring fixed-dollar Ether trades in 43 of them. As Ether’s price moved, the number of contracts changed while the transactions’ intended notional amount remained nearly constant.
The four-day September sampling window captured only part of a pattern that extended over months. The analysis documented both the repetition and the concentration of activity in the narrower September dataset, without determining why participants placed the orders.
Kalshi’s visual explanation of the recurring Ether perpetual trade patterns and liquidity-incentive programs. — Source: Kalshi
Kalshi set out its explanation in a September 22 statement, saying market makers were posting fixed-size orders under programmes designed to pay flat fees for keeping resting liquidity available. The company said those payments were not based on trading volume.
Under that description, a market maker’s incentive is linked to maintaining an order rather than generating more transactions. Kalshi said the recurring Ether perpetual trades were produced by those fixed-size orders, which it presented as the source of the repeated fixed-dollar pattern identified in the trade data.
Kalshi said its self-clearing-member fee-rebate programme began in July. A related filing took effect on September 16, according to a CFTC filing. The company said the programme prevents participants from receiving net-negative fees on a trade.
The timing places the programme’s July start within the period reviewed by CoinDesk, which began on June 19. Its broader findings, however, cover trading before the stated launch date as well as activity after the September 16 filing took effect.
Kalshi’s public position remains that the behaviour reflects the mechanics of liquidity provision and its fee structure. The company said it had not been contacted by the CFTC and did not believe a formal examination was under way as of September 23.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
