Polymarket's broker unit clears NFA registration as CFTC approval waits

Overview

Updated 1 hour ago

A futures commission merchant (FCM) is a firm licensed to take customer orders, hold customer money and, with further approval, lend against positions. Polymarket's brokerage unit, PM Derivatives LLC, is now one. The National Futures Association (NFA) approved the registration, and Polymarket announced it on November 3, 2026.

The registration completes a three-part American structure: an exchange, a clearinghouse and a broker. It does not switch the broker on. PM Derivatives still needs Commodity Futures Trading Commission (CFTC) authorization to carry customer orders, and it will fund every position in full, with no margin, unless that changes.

Why it matters

A registered broker is what lets a prediction market hold customer money in the U.S. Polymarket now has one, pending the CFTC.

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Key Indicators

U.S. regulated entities in Polymarket's structure

Exchange, clearinghouse and broker are now registered separately.

119

Days from FCM application to NFA registration

Applications were filed July 3, 2026; the registry shows approval October 30, 2026.

100%

Positions that must be fully funded at trade time

PM Derivatives plans to operate on a fully collateralized basis.

March 2026

Month Kalshi's affiliate registered as an FCM

Kinetic Markets LLC reached FCM status about four months before Polymarket's unit.

Voices

Curated perspectives — historical figures and your fellow readers.

People Involved

Nikhil Joshi

Chief executive of PM Derivatives LLC

Leading a registered but not yet operating brokerage

Organizations Involved

Polymarket

Prediction market

Runs a CFTC-registered U.S. exchange and an offshore platform; under CFTC investigation

Polymarket is a prediction market where users trade on real-world outcomes, including elections and government policy.

PM Derivatives LLC

Futures commission merchant

NFA-registered; awaiting CFTC authorization to act as a broker

The Polymarket affiliate licensed to act as an intermediary, holding customer orders and funds.

National Futures Association

Self-regulatory organization

Approved PM Derivatives as a futures commission merchant

The industry body that registers futures brokers and polices their conduct under CFTC oversight.

Commodity Futures Trading Commission

Federal regulator

Has not authorized PM Derivatives to operate as a broker; investigating Polymarket

The federal agency that oversees futures and event contracts, and must clear a broker before it can trade for customers.

Kalshi

Prediction market

Rival whose affiliate registered as an FCM in March 2026

A CFTC-regulated prediction market that reached broker registration before Polymarket.

Timeline

March 2026 November 2026

5 events Latest: Yesterday

Tap a bar to jump to that date

November 2026
Polymarket announces the broker approval
Latest Announcement

The company says it now holds a regulated exchange, clearinghouse and broker in the U.S.
Yesterday
October 2026
NFA registry shows approval granted
Regulatory

All three applications are approved, and the firm is listed as an inactive member.
5 days ago
July 2026
PM Derivatives files for broker registration
Filing

PM Derivatives LLC applies for FCM, NFA membership and swap firm registration.
July 3rd, 2026
May 2026
Senators ask CFTC to ban event-contract margin
Statement

John Hickenlooper and Jack Reed write to the CFTC opposing margin trading on event contracts.
May 2026
March 2026
Kalshi's broker affiliate registers first
Regulatory

The NFA registers Kinetic Markets LLC as an FCM, giving Kalshi a licensed intermediary before any rival.
March 2026

Scenarios

CFTC clears PM Derivatives to trade for customers

Possible Resolves by End of 2027

Discussed by: Reuters, which reported the CFTC step as the remaining gate

The NFA registration gives the firm its regulatory status. A CFTC authorization would let PM Derivatives actually accept orders and hold customer funds, and would open the door to distribution partners that need a regulated broker behind them. Triggers: a CFTC order, exemption or no-action position naming the firm.

CFTC amends the rulebook and Polymarket offers margin

Unlikely Resolves by End of 2027

Discussed by: Crowdfund Insider and Tech Times, cited in trade coverage of the FCM filings

Broker registration is necessary but not sufficient for leveraged trading. Polymarket US would also need the CFTC to approve a change to its exchange rulebook allowing positions that are not fully funded at the outset. Senators Hickenlooper and Reed have asked the agency to refuse exactly that for event contracts.

PM Derivatives stays registered but inactive

Likely Resolves by End of 2027

Discussed by: NFA registry records, which list the firm as an inactive member

Registration and operation are separate states. The firm can hold its licence, satisfy capital and compliance duties, and still conduct no commodity interest business while the CFTC review and the Polymarket investigation run. This is the current status, extended.

CFTC enforcement action stalls the U.S. buildout

Uncertain Resolves by End of 2027

Discussed by: Reuters, which reported the CFTC is investigating the firm

An open investigation into Polymarket's marketing and other practices sits alongside the licensing file. A formal enforcement action would not automatically void the NFA registration, but it would complicate any CFTC sign-off and give distribution partners a reason to wait.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

November 2012

Intrade shut out of the U.S. (2012)

The Commodity Futures Trading Commission sued Intrade, an Irish prediction market with a large American user base, alleging it offered off-exchange options on commodities and violated a 2005 settlement. Intrade blocked U.S. customers rather than fight the case to a conclusion.

Then

American traders lost access to what was then the biggest prediction market in the world.

Now

Intrade ceased operations in 2013. For a decade afterward, no prediction market operated inside U.S. registration.

Why this matters now

Polymarket spent years offshore, the position Intrade died in. The exchange, clearinghouse and broker registrations are the route out of it.

2023-2024

Kalshi v. CFTC (2024)

Kalshi, a CFTC-regulated exchange, sued the agency after it blocked contracts on which party would control Congress. A federal district court ruled for Kalshi in September 2024, and an appeals court declined to block the contracts, letting them trade before the November election.

Then

Election contracts listed on a U.S. exchange weeks before the vote, and rivals moved into the same market.

Now

The case established that event contracts on elections could trade under federal regulation, and Kalshi later added a registered broker affiliate.

Why this matters now

Kalshi's March 2026 FCM registration is the template Polymarket copied in July. The competitive gap between them is now measured in regulatory steps, not users.