Alpaca is getting ready to join the prediction market trend. The company said its subsidiary, Alpaca Derivatives LLC, has obtained futures commission merchant (FCM) status, meaning it can offer access to event contracts in the US.
More specifically, Alpaca Derivatives LLC has registered as a futures commission merchant with the Commodity Futures Trading Commission and became a member of the National Futures Association.
For companies already using Alpaca’s brokerage services, the move could make it possible to add prediction-market products without building a separate regulated technology stack from scratch.
“Alpaca is building a one-stop platform for financial companies that want to give their customers access to more markets,” said Tony Lee, Chief Brokerage Officer at Alpaca.
“Entering a new market often means integrating multiple providers and taking on added operational complexity. By adding event contracts to our platform, we can give partners a simpler way to expand their offerings through the infrastructure they already use to build and scale their businesses.”
Prediction Markets Enter the Broker Stack
Prediction markets have moved from user apps to infiltrate broker technology ecosystems. Brokers are responding to retail demand for event contracts, while infrastructure providers are responding to broker demand by adding these instruments to their platforms.
Apex Fintech Solutions recently launched an API-based service that allows brokers and fintech companies to offer Kalshi’s event contracts inside their own trading interfaces. The model lets firms add CFTC-regulated event contracts without building their own FCM infrastructure or direct exchange connectivity.
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DriveWealth also announced in February that it planned to integrate Kalshi event contracts into its API-first brokerage platform, allowing partners to offer them alongside stocks and ETFs.
Alpaca’s approach differs in one important respect: the company has registered its own FCM subsidiary instead of connecting brokers to a third-party FCM setup.
Technology vendors including Leverate and Devexperts have also been supplying white-label front ends and trading-platform components for prediction markets.
However, those tools should not be conflated with FCM-backed US distribution infrastructure, as they do not by themselves provide regulated exchange connectivity, clearing, or the required licensing.
Regulatory Preparations before Launch
For now, Alpaca’s announcement is regulatory groundwork for a future launch. The company said it plans to introduce a broader range of futures products over time, subject to regulatory approval.
Alpaca has not disclosed which designated contract markets it will connect to, when the product will launch, or which event contracts and client segments it will support.
