Prospect Markets, said today (Thursday) that its US brokerage arm became a registered introducing broker. Prospect Brokerage USA joined the National Futures Association (NFA) and registered with the Commodity Futures Trading Commission (CFTC).
A separate affiliate joined a CFTC-regulated exchange three days earlier. The two approvals split Prospect's US rollout between retail distribution and direct exchange access, extending a shift toward third-party prediction-market infrastructure.
Prospect Brokerage USA LLC will introduce individual customers. Prospect Trading USA LLC supports Prospect Markets' institutional business.
Both routes rely on Crypto.com entities for exchange, clearing and customer-account infrastructure. Crypto.com spun out its standalone OG prediction-market platform this year.
One Brand, Two US Subsidiaries
Prospect Brokerage registered as a guaranteed introducing broker under an agreement with Foris DAX FCM LLC, which does business as OG Broker. The Crypto.com affiliate will carry the accounts that Prospect introduces.
Prospect will find and onboard customers but will not hold their funds. US prop firms have begun adopting a similar model.
Under NFA rules, the guarantor futures commission merchant (FCM) is liable for the guaranteed IB's acts and omissions. It must also carry every customer account introduced by the IB.
Prospect said the registration allows its brokerage unit to introduce US retail customers to Crypto.com Derivatives North America (CDNA). The exchange offers fully collateralized event contracts, primarily tied to sports.
"Our focus turns to commercialization," founder and Chief Executive Officer Johnny Chen said.
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CFTC registration is not an endorsement of Prospect Markets or its products. Prospect included that caveat in its announcement.
A Separate Company Handles Institutional Trading
Prospect Trading USA, the institutional subsidiary, became a CDNA exchange member on Monday. Prospect said the membership gives the unit direct access to CDNA.
CDNA is a trading name of North American Derivatives Exchange, which the CFTC regulates as a designated contract market.
Other trading platforms are also connecting institutional clients to the venue. Trading Technologies connected its platform to OG.com this month.
Prospect first outlined the retail route in a non-binding July agreement with OG Broker. At that time, the companies still needed final agreements and regulatory approvals.
Crypto.com Uses the Model With Other Consumer Brands
Prospect is not the first customer-facing company to use Crypto.com's FCM as guarantor for a prediction-market IB.
High Roller Technologies, a listed online gaming operator, signed its Crypto.com agreement in April. Its ROLR US subsidiary became an NFA member and guaranteed IB in June, according to a filing with the Securities and Exchange Commission.
High Roller plans to distribute CDNA contracts through its ROLR platform. Its June filing said Crypto.com's FCM would process transactions, carry customer accounts and hold client assets.
In both arrangements, the consumer brand supplies the interface and customer relationship. Crypto.com's regulated companies provide exchange access and account infrastructure.
Prop Firms Use IBs to Move Traders Into Live Accounts
Futures prop firms use IB affiliates for a different product funnel. Topstep and Tradeify connect traders in simulated programs with personal futures accounts.
Topstep Brokerage uses Plus500 for clearing and technology.
Tradeify launched Slay Markets in May with NinjaTrader Clearing as its FCM.
Tradeify's founders later told FinanceMagnates.com that the prop business becomes a funnel for live accounts. That lets Tradeify keep the customer relationship when a trader moves from simulation to a personal brokerage account.
Prospect is not a prop firm and does not sell simulated trading challenges. The common element is the separation between customer acquisition and account custody.
The US product is not live. Prospect's July announcement targeted a start before the third quarter ends on September 30, but Thursday's release gave no date.
