US regulators are reassessing how they track positions as trading moves to new platforms, and Kalshi has just turned to Pyth Network to supply price feeds for eight commodity markets. Kalshi and Pyth said the integration will settle contracts tied to metals, energy and agricultural products, while giving market makers direct access to Pyth Pro feeds. The Commodity Futures Trading Commission is reassessing its Part 17 large-trader reporting framework to ensure positions held on alternative trading venues are visible to regulators, officials said. The moves touch data, settlement and oversight as derivatives trading broadens beyond traditional exchanges.

The tech angle is clear. Kalshi is pushing deeper into commodity-linked contracts. Pyth Network will supply the price data that determines settlement for eight initial markets, the companies said. Those markets cover gold, silver, Brent crude oil, natural gas, copper, corn, soybeans and wheat.

That list matters. It spans metals, energy and agriculture. It ties Kalshi’s product design to physical market references. Pyth will act as the resolution source for those contracts. Pyth Pro will also provide direct market data access to Kalshi’s market makers, the company said.

How the integration works

Pyth provides continuous price feeds taken from market data sources. Kalshi will use those feeds to settle contracts that link to real-world commodity prices, Pyth said. The feeds aim to give a single, consistent reference price when a contract expires.

Pyth said commodity-linked contracts create a mismatch with markets that trade around the clock, while many traditional exchange windows close overnight or at weekends. Continuous price discovery, Pyth added, becomes more important when venues operate outside typical exchange hours.

Kalshi previously integrated Pyth to bring regulated event-market data onchain, the companies said. That earlier work covered categories such as politics, macroeconomic policy, sports and cultural events. The new deal expands that relationship into physically referenced commodity products.

Why the CFTC is revisiting its reports

The Commodity Futures Trading Commission is reviewing a weekly report that shows positions held by large traders, according to market coverage.

The review is meant to check whether the data captures positions held on newer platforms like Kalshi.

The report in question stems from the agency’s Part 17 large trader reporting rule. Part 17 requires certain market participants to disclose positions in futures and options contracts so the CFTC can monitor potential market manipulation and systemic risk. The agency proposed amendments to Part 17 in June 2023 to modernise its approach, and it's now assessing whether further changes are needed given the rise of alternative venues.

Mastheads

Kalshi is a New Jersey-based exchange that has broadened its product range to include commodity contracts. That expansion is one reason the weekly snapshot is under scrutiny, according to reporting. Regulators want transparency about where positions sit and who holds them as trading fragments across platforms.

What changes regulators are weighing

Officials are looking at how the large-trader report captures trades and positions on non-traditional venues. The concern is procedural rather than technical. The CFTC needs to know whether existing reporting rules gather the same picture of market concentration and risk when trading moves to new venues.

The review could mean adjusted reporting lines, new data fields, or clearer obligations for platforms that list physically referenced or round-the-clock contracts. But the agency hasn't announced final changes. The earlier 2023 proposal showed the CFTC’s intent to modernise reporting. The current review follows those steps as market structures evolve.

What this means for market participants

The Pyth-Kalshi tie-up affects both data providers and traders. Market makers on Kalshi will get direct access to Pyth Pro feeds, which could speed execution and tighten pricing, Pyth said. Retail traders gain access to commodity-linked products that reference the same settlement sources used by institutional participants.

At the same time, the CFTC review may change how large players disclose positions. If reporting rules are adjusted, firms might need to reroute data or expand their reporting pipelines. That could raise costs for some participants, while giving regulators a fuller picture of where risk is building.

For data vendors, the deal shows a demand for reliable, high-frequency price feeds that can serve both onchain and offchain settlement. Kalshi’s earlier distribution of regulated event data to blockchains signalled a shift toward wider, cross-platform use of exchange-sourced prices. The commodities push extends that model to markets where physical delivery and continuous trading matter.

One friction point is timing. Commodity markets often trade nearly 24 hours. Traditional daily settlement windows may not align with onchain resolution processes or with the way Kalshi wants to timestamp outcomes. Pyth flagged that mismatch as a reason its feeds matter.

Another is venue definition. The CFTC’s rules were built for a market structure dominated by a handful of established exchanges. New entrants that list event-driven and commodity-linked contracts make the map. Regulators will want clear rules that let them see positions regardless of the trading venue.

That visibility is a shared goal. Kalshi said the partnership with Pyth supports its push to broaden access for both retail and institutional participants as it adds more liquid commodity-linked products. The exchange’s growth offers new pathways for price discovery and risk management, but it also requires regulators to adapt how they monitor those paths.

Market data firms see an opening. The demand for high-quality reference prices that can operate across blockchains and traditional systems is growing, the companies said. Kalshi’s earlier onchain distribution of event data reached more than 100 blockchains, illustrating the appetite for regulated feeds in decentralised applications.

The Pyth tie-up suggests commodity products will follow the same path. That makes people wonder about interoperability between settlement systems, the technical robustness of feeds, and the legal status of feed providers when they act as resolution sources.

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Pyth will provide the price feeds that settle Kalshi contracts tied to gold, silver, Brent crude oil, natural gas, copper, corn, soybeans and wheat.

This article was created with AI assistance.