Polymarket subsidiary approved by US NFA, plans to engage in futures brokerage business

BlockBeats news, November 4 - According to Reuters, the National Futures Association (NFA) has approved Polymarket's subsidiary PM Derivatives LLC to operate as a Futures Commission Merchant (FCM). An NFA spokesperson stated that the subsidiary has met all requirements for FCM registration, but actual futures brokerage business still requires approval from the U.S. Commodity Futures Trading Commission (CFTC).

Polymarket currently operates a CFTC-registered exchange and an offshore platform. If approved by the CFTC, PM Derivatives will be able to act as an intermediary to receive customer orders and funds. Polymarket stated that the subsidiary plans to adopt a fully collateralized model, requiring customers to provide full funding for all positions at the time of execution.

The approval comes as prediction markets face regulatory scrutiny and legal challenges. The CFTC is still conducting an investigation into Polymarket.