NFA approved Polymarket's subsidiary, but it still requires CFTC approval to conduct futures brokerage business

The NFA has approved PM Derivatives LLC, a subsidiary of Polymarket, to operate as a Futures Commission Merchant (FCM). An NFA spokesperson stated that the subsidiary has met all requirements for FCM registration, but actual futures brokerage operations still require approval from the Commodity Futures Trading Commission (CFTC).

If approved, PM Derivatives will be able to act as an intermediary to receive customer orders and funds; Polymarket stated that the subsidiary plans to adopt a full collateral model, requiring customers to provide sufficient funds for the entire position at the time of the transaction. The CFTC is currently still investigating Polymarket.