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Prediction Markets101

Designated Contract Market (DCM)

CME, ICE, and Kalshi are all DCMs under CFTC authority.

Prediction Markets 101 editorial team Updated April 16, 2026 1 min read

Definition

A DCM is a CFTC-approved exchange for trading derivatives including event contracts. Kalshi is a DCM.

Plain-English explanation

DCM status requires clearing, segregation of customer funds, CFTC oversight, and trade reporting. Event contracts on a DCM are federally-legal in all US states — CFTC authority preempts state gambling law.