ProphetX Receives CFTC Approval: Pioneering Sports-Native Prediction Market in America
ProphetX, the first sports-native prediction market in America, has received approval from the U.S. Commodity Futures Trading Commission (CFTC) to register as a Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO). This milestone allows ProphetX to operate within the CFTC's regulatory framework, making it the first sports-native, direct-clearing prediction market in the country. The approval follows the submission of applications in November 2025 and a comment letter in April 2026 in response to the Commission's Advance Notice of Proposed Rulemaking on Prediction Markets.
Dean Sisun, CEO and Co-Founder of ProphetX, expressed excitement about the approval, highlighting the opportunity to offer best-in-class sports event market offerings to millions of Americans while adhering to regulatory standards. The dual registration as a DCM and DCO enables ProphetX to create a vertically integrated marketplace where users can trade, clear, and settle event-based contracts under CFTC oversight.
ProphetX's regulated market structure includes a proprietary Request for Quote (RFQ) Parlay Mechanism, allowing users to construct and price multi-event combinations directly with counterparties. This mechanism, inspired by institutional trading protocols in traditional financial markets, offers flexibility, transparency, and competitive pricing for event-based contracts. The company's regulatory journey began in the UK in 2018, where it was licensed as a peer-to-peer marketplace for sports event trading, positioning ProphetX as a pioneer in the sports event contract space.
With the CFTC approval, ProphetX is poised to enhance its market-leading platform, drive innovation, and expand its presence in the prediction markets industry. Founded in 2018, ProphetX aims to create a trusted and innovative marketplace where individuals can engage in event outcomes across a wide range of markets.