Polymarket Gets NFA Approval for Fully Collateralised US Brokerage
Polymarket has received approval from the National Futures Association for its affiliated entity PM Derivatives to operate as a Futures Commission Merchant, with all positions fully collateralised at trade entry.
The registration gives Polymarket another regulated route to work with distribution partners and expand into certain jurisdictions. PM Derivatives will accept and carry customer orders and funds, with all positions fully collateralised at trade entry.
The approval comes amid continued regulatory scrutiny of prediction markets in the US. In August, the Commodity Futures Trading Commission warned regulated firms against using American-style bookmaker odds to list, solicit or advertise derivatives.
The CFTC said prices should instead be displayed in nominal or percentage terms that reflect market pricing, warning that bookmaker-style formats could mislead customers about the nature of the contracts.
Three-Part US Derivatives Structure
The registration completes three key components of Polymarket's US derivatives infrastructure: an exchange, a clearinghouse and a broker. Each function operates through a separate affiliated entity.
QCX LLC, doing business as Polymarket US, operates the exchange, while QC Clearing LLC serves as the clearinghouse. PM Derivatives will handle the brokerage function.
Its FCM status adds an intermediated layer to Polymarket's existing direct exchange model. The registration allows PM Derivatives to accept and carry customer orders and funds as a broker, subject to CFTC and NFA requirements.
Existing Partners Continue
The registration provides Polymarket with another regulated route to work with distribution partners, which could support its expansion into jurisdictions where access to derivatives markets requires a partnership with a regulated broker.
PM Derivatives will initially operate exclusively on a fully collateralised basis. Any future offering of margin services would require additional regulatory approval, according to the company.
The registration will not replace Polymarket's existing brokerage arrangements. The company will continue working with its current FCM and brokerage partners, which will retain access to Polymarket US markets for their own customers.
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