ProphetX Obtains CFTC Approval to Operate America's First Federally Regulated Sports-Native Exchange

NEW YORK, June 11, 2026 /PRNewswire/ -- ProphetX, America's first sports-native prediction market, today announced that the U.S. Commodity Futures Trading Commission (CFTC) has approved its applications to register as a Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO). With these CFTC licenses, ProphetX is poised to become the first sports-native, direct-clearing prediction market to launch and operate in full compliance with the CFTC's DCM and DCO regulatory framework. The approvals follow Prophet's submission of its DCM and DCO applications in November 2025, as well as its April 2026 comment letter responding to the Commission's Advance Notice of Proposed Rulemaking on Prediction Markets.

"This approval positions ProphetX to become the first sports-native direct-clearing prediction market in the United States," said ProphetX CEO and Co-Founder Dean Sisun. "We can now expand our best-in-class sports event market offerings to millions of Americans across the country while competing on a level regulatory playing field. ProphetX thanks CFTC Chairman Selig for his leadership and the Commission's staff for their work throughout the application process, and we look forward to helping shape the future of prediction markets." 

By obtaining dual registration as a DCM and DCO, ProphetX intends to operate a vertically integrated marketplace that allows users to directly trade, clear, and settle event-based contracts under comprehensive CFTC oversight.

ProphetX's regulated market structure includes a proprietary Request for Quote (RFQ) Parlay Mechanism, which enables users to construct and price multi-event combinations directly with counterparties. The mechanism mirrors institutional trading protocols used in traditional financial markets, delivering flexibility, transparency and competitive pricing to event-based contracts.

ProphetX's eight-year regulatory journey began in the United Kingdom in 2018, where it was licensed as a peer-to-peer marketplace for sports event trading. The company was building exchange infrastructure for sports-based contracts years before U.S. prediction markets entered the sports event contract space. Today's CFTC approval positions ProphetX to further advance its market-leading platform, drive innovation, and expand its presence in the rapidly growing prediction markets industry.

About ProphetX:
Founded in 2018, ProphetX is America's first sports-native prediction market. The company is a regulated U.S. exchange for event-driven contracts, built on a sports-native foundation and designed to expand across a broad range of event markets. Its mission is to create the world's most trusted and innovative marketplace where anyone can participate in event outcomes.

Media Contact:
ProphetX Newsroom
[email protected]
http://www.prophetx.co/lobby

SOURCE ProphetX