Kalshi and S&P Dow Jones Indices announced on Monday, October 26, 2026, that they will integrate official benchmark indices into financial prediction markets. Under the agreement, Kalshi becomes a preferred platform licensed to list event contracts tied to S&P Dow Jones Indices benchmarks, while S&P Dow Jones Indices will build new indices from Kalshi's trading data.
The settlement architecture will rely exclusively on final index values computed and published by S&P Dow Jones Indices. The release includes a limitation: Kalshi's S&P-linked contracts are not sponsored or endorsed by S&P DJI, which disclaims liability for index errors or interruptions. Nevertheless, both companies framed the arrangement as a way to anchor event contracts to widely audited benchmarks and reduce settlement disputes.
Kalshi co-founder and CEO Tarek Mansour wrote that the two firms have "joined forces to build the next generation of financial markets," citing the 1896 debut of the Dow and the 1957 launch of the S&P 500 as lineage. He added: "Kalshi's aspiration is to be the next great financial exchange. S&P DJI is the gold standard for benchmarks." Cathy Clay, CEO of S&P Dow Jones Indices, said the deal pushes the firm's benchmark business "into one of the fastest-growing categories in financial markets."
The partnership arrives as Kalshi reports record activity. It led prediction market platforms by more than 81% as of October, with weekly volume hitting a record $21.5 billion as of October 18 and trades surpassing 100 million for the first time. Cumulative volume in 2026 had risen above $329.5 billion. Crypto wallet Phantom is among the latest platforms adding Kalshi-powered events. Artemis data put trailing-year prediction-market volume at $394.2 billion, with Kalshi accounting for $309.8 billion.
Institutional interest in event contracts has been expanding. Nasdaq filed a regulatory application in March to list contracts based on the Nasdaq 100 index and in August formed an alliance with Kalshi for market surveillance. Intercontinental Exchange committed up to $2 billion to rival Polymarket in October 2025. CME Group is fighting Kalshi in federal court and before regulators over perpetual contracts. Separately, S&P Global Ratings published a specialized methodology earlier this month to evaluate crypto-asset backed loan vaults across six risk areas, including asset liquidity and blockchain security.
Legal challenges remain. New York Governor Kathy Hochul and Attorney General Letitia James sued KalshiEX, LLC on July 31, calling it an unlicensed gambling operation. Connecticut Attorney General William Tong filed a similar suit over sports contracts, and Utah sued five Kalshi entities and two Susquehanna trading firms, estimating that the platform collected between $30.6 million and $61.2 million in fees from state accounts. Kalshi argues that it operates as a CFTC-regulated designated contract market and that federal rules preempt state gambling laws. Courts have split: the Third Circuit sided with Kalshi, while the Ninth and Sixth Circuits backed states.
According to Kalshi, the first financial contracts settled under S&P Dow Jones Indices benchmarks will be enabled for trading before the end of the current year. S&P Dow Jones Indices may also use order-book behavior from Kalshi to calculate sentiment barometers for institutional portfolios.
