Polymarket Wins NFA Approval for Futures Brokerage, Awaits CFTC Sign-Off
Polymarket clears a major NFA hurdle for its own futures broker. It can't start yet, as the CFTC has the final say.
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Polymarket has added the last big piece to its US setup. The National Futures Association (NFA) has approved its affiliate, PM Derivatives LLC, as a futures commission merchant, or FCM.
Polymarket announced the news on November 3, the same day Americans voted in the midterm elections. However, the unit still can’t start carrying customer accounts. According to Reuters, it also needs a final sign-off from the Commodity Futures Trading Commission (CFTC).
What the NFA Approval Covers
An FCM is a broker in the futures world. It takes customer orders, holds their funds, and handles account-level obligations. In Polymarket’s case, PM Derivatives will work only on a fully collateralized basis. That means customers fund each position in full when they trade, so there’s no borrowing involved.
The NFA’s BASIC registry lists the FCM registration, NFA membership, and swap firm approval as dated October 30. PM Derivatives first filed those applications on July 3. For now, the registry still shows the firm as an inactive member, since it hasn’t started any commodity interest business.
Polymarket was clear that margin isn’t part of this approval. The company said any future margin offering would need separate regulatory approval.
“Becoming an approved FCM is a foundational step for PM Derivatives,” said Nikhil Joshi, the unit’s CEO. He also pointed to the ongoing duties that come with it, from capital adequacy and customer fund protection to risk management and compliance.
Exchange, Clearinghouse, and Now a Broker
With this step, Polymarket says its US derivatives setup is now complete. QCX LLC, which trades as Polymarket US, runs the exchange. QC Clearing LLC acts as the clearinghouse. PM Derivatives is now set to be the broker.
That structure took a while to build. In July 2025, Polymarket agreed to buy QCX and its clearinghouse in a $112 million deal. Then, on November 25, 2025, the CFTC amended Polymarket US’s order of designation. The change let users trade through FCMs and let the exchange onboard brokerages directly. CEO Shayne Coplan said at the time that it reflected “the maturity and transparency” US regulation demands.
So far, outside brokers have handled that intermediated access. Polymarket’s existing FCM and brokerage partners will keep offering Polymarket US markets, the company said. Having its own FCM, on the other hand, gives the company a second route to users. It could also help in places that require a regulated broker partner.
Why Brokerage Matters in the Prediction Market Race
For prediction markets, distribution has become a big deal. Kalshi already reaches users through outside brokerages, including Robinhood. It also moved first to launch its own broker. Its affiliate, Kinetic Markets LLC, was registered by the NFA as an FCM on March 24, 2026.
The gap between the two is still wide. In June, Kalshi handled around $33 billion in trading volume, according to The Block. Polymarket and its US entity did nearly $14 billion combined over the same period.
An in-house broker could help Polymarket close some of that distance. It would give the company more control over onboarding, funding, and order routing. What’s more, a bigger share of each trade’s economics would stay in-house.
What Still Stands in the Way
The final step rests with the CFTC. Reuters reported that PM Derivatives can’t operate as a broker until the regulator approves it. The same report noted that the CFTC is also investigating Polymarket. On top of that, the company has faced scrutiny over some of its marketing.
Meanwhile, the wider industry keeps growing fast. Prediction markets have expanded quickly over the past two years, Reuters noted, helped by supportive federal policies. Still, the sector keeps running into legal fights, including with several states.
For now, Polymarket hasn’t given a date for when PM Derivatives will open to customers. The company only said it is “building toward new products, subject to regulatory approval.”
