S&P Dow Jones, Kalshi strike index-based event contracts deal
Prediction market operator Kalshi is expanding further into mainstream finance through a new agreement with S&P Dow Jones Indices. The partnership lets Kalshi list event contracts tied to major benchmarks and gives S&P a new data source for indexes linked to economics, politics and sports.
Highlights
- S&P Dow Jones Indices and Kalshi signed a preferred-provider agreement allowing Kalshi to list event contracts settled on S&P DJI benchmark values.
- The partnership enhances Kalshi's credibility amid gambling allegations and aims to accelerate retail and institutional demand for index-linked event contracts.
- S&P can now use Kalshi's prediction data to create indexes on economics, politics, and sports, marking its entry into the prediction market segment.
Agreement expands benchmark-linked contracts
As reported by Reuters, S&P Dow Jones Indices and Kalshi on Monday signed a preferred-provider agreement that allows the prediction market platform to list event contracts linked to prominent benchmarks. Those contracts are set to settle against official index values published by S&P DJI, the companies said.The arrangement gives Kalshi added credibility as it continues to face allegations that it operates as a gambling platform. S&P DJI's standing in global finance may help support broader acceptance of Kalshi's products among both retail and institutional participants.
Kalshi CEO Tarek Mansour said in a statement that S&P DJI is the "gold standard" for benchmarks and that bringing those standards to Kalshi is an important step toward accelerating demand across investor groups.
Partnership opens new prediction market products
The agreement also allows S&P to use Kalshi's prediction data to construct new indexes tracking economics, politics and sporting events. That move marks the financial information provider's entry into the developing prediction market segment.Cathy Clay, CEO of S&P Dow Jones Indices, said the collaboration extends the index provider's role into one of the fastest-growing categories in financial markets. The broader prediction market industry, led by platforms including Kalshi and Polymarket, is gaining visibility by letting users wager on outcomes ranging from sports and elections to military operations.
Our earlier article on the S&P 500’s push toward 8,000 examined how the index’s rally was running into a tougher backdrop of higher oil prices, elevated Treasury yields, and political uncertainty. It also highlighted concerns about narrow market breadth and heavy dependence on a small group of AI-linked megacaps, with investors looking to upcoming third-quarter earnings to justify further gains.