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Prediction market operator Polymarket has received approval from the National Futures Association (NFA) for its affiliate PM Derivatives, LLC to operate as a Futures Commission Merchant (FCM) on a fully collateralised basis.
The approval gives Polymarket all three major components of a US derivatives business across its affiliated entities: an exchange, QCX LLC (d/b/a Polymarket US); a clearing house, QC Clearing LLC; and now a broker in PM Derivatives. The exchange and clearing house came to Polymarket through its $112 million acquisition of QCEX in July 2025, the deal that opened its route back into the US market.
What The FCM Approval Allows
As an FCM, PM Derivatives adds an intermediated layer alongside Polymarket’s direct exchange model. It can accept and carry customer orders and funds as a broker, under Commodity Futures Trading Commission (CFTC) and NFA safeguards. Polymarket says this gives it an additional regulated route to work with distribution partners and to expand into jurisdictions where partnering with a regulated broker is required.
PM Derivatives will operate on a fully collateralised basis only, with every position funded in full at the time of trade. Any future margin offering would need further regulatory approval. Polymarket will continue to work with its existing FCM and brokerage partners, which will keep offering access to Polymarket US markets to their own customers.
“Becoming an approved FCM is a foundational step for PM Derivatives. PM Derivatives’ registration as an FCM establishes its regulatory status as an intermediary, enabling it to accept customer orders and hold customer funds. Operating in this capacity entails ongoing obligations for capital adequacy, customer fund protection, risk management, and regulatory compliance.” - Nikhil Joshi, CEO, PM Derivatives
Polymarket describes the approval as another step towards bringing prediction markets to more people under federal oversight, as it strengthens the infrastructure behind its US markets and works towards new products, subject to regulatory approval.
How Polymarket Got Here
Polymarket was shut out of the US in 2022, when the CFTC found it had been running an unregistered derivatives exchange. Its return has come in stages since the QCEX deal. In September 2025 the CFTC granted no-action relief to the newly acquired exchange and clearing house, and in November 2025 it issued an Amended Order of Designation allowing Polymarket US to offer intermediated access, so customers could trade through FCMs and existing brokerage infrastructure.
In April 2026, Bloomberg reported that Polymarket was in talks with the CFTC about reopening its main international platform to US users. On 3 July 2026, PM Derivatives filed with the NFA for FCM registration, NFA membership and swap firm registration, filings that were widely reported as groundwork for margin trading. Bloomberg reported at the time that leveraged trading would also require CFTC approval of rulebook changes. The approval announced today covers fully collateralised business only.
The Race With Kalshi
Polymarket’s closest US rival, Kalshi, reached this point first. Its affiliate Kinetic Markets LLC received NFA approval as a registered FCM and swap firm in March 2026. Kalshi has also been building out its institutional business, hiring former Standard Chartered prime brokerage head Andy Ross to lead its push into institutional markets.
Regulatory Scrutiny
Reuters reported that PM Derivatives will still need approval from the CFTC before it can operate as an FCM, and that the CFTC is currently investigating Polymarket. The New York Times reported in June that the agency had opened its third inquiry into the company in recent years.
The news arrived on US midterm election day, with Polymarket one of the main venues for trading on the results.
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