Polymarket has received approval from the National Futures Association for its affiliated entity, PM Derivatives, LLC, to operate as a Futures Commission Merchant. The broker will operate on a fully collateralised basis, requiring customers to fund their positions in full at the time of each trade.
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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.
It 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.
Polymarket Completes 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.
- Polymarket Adds Self-Exclusion and Deposit Limits for Prediction Traders
- After Coinbase, Gemini and Kalshi, New York Takes Its Prediction Market Fight to Polymarket
- Polymarket Wants Financial Status in Europe, but It May Come with a Retail Ban
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.
JUST IN: Polymarket's PM Derivatives won NFA approval as a futures broker (FCM) 🦉 Fully collateralized Exchange, clearinghouse and broker now in-house Margin needs another approval Lesson: on Election Day, plumbing matters as much as odds Educational, not financial advice. https://t.co/1j4NMsCdlx
— News Gurus🦉 (@NewsGurus) November 3, 2026
Polymarket Keeps Existing Partners Alongside New FCM
It also provides Polymarket with another regulated route to work with distribution partners. This 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.
