ProphetX Approved by CFTC For Sports Event Contracts

• ProphetX announced today it received CFTC approval of its applications to register as a DCM and a DCO
• The company will soon be able to offer event contracts, including sports event contracts, after the approval
• Applications were submitted in November 2025

According to a ProphetX announcement, the company will soon become the first sports-native prediction market.

The Commodity Futures Trading Commission (CFTC) today approved ProphetX’s applications to register as a Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO).

The approvals will allow ProphetX to soon offer event contracts, including sports event contracts, on its online prediction market platform.

First Sports-Native Direct-Clearing Prediction Market

ProphetX submitted applications to the CFTC in November 2025. It also submitted a comment letter responding to the CFTC’s Advance Notice of Proposed Rulemaking on prediction markets in April 2026.

“This approval positions ProphetX to become the first sports-native direct-clearing prediction market in the United States,” ProphetX CEO and Co-Founder Dean Sisun said in a company announcement. “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.”

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

ProphetX also noted its regulated market structure includes a proprietary request for quote parlay mechanism, which will allow users to construct and price multi-event combinations.

“The mechanism mirrors institutional trading protocols used in traditional financial markets, delivering flexibility, transparency and competitive pricing to event-based contracts,” the company reported.

Peer-To-Peer Roots

ProphetX 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,” the company noted in today’s announcement.