Sporttrade Granted CFTC-Approval as DCM and DCO to Launch Prediction Market Offerings

• Sporttrade announced this week the Commodity Futures Trading Commission granted its DCM and DCO approval
• The Designated Contract Market and Derivatives Clearing Organization registration clears the way for Sporttrade to begin offering event contracts
• The former betting exchange closed its online sports betting offerings in June 2026
  

Sporttrade’s journey to the prediction market space is here.

The former sports betting platform announced this week the Commodity Futures Trading Commission (CFTC) granted the company registration as both a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO).

“Receiving our DCM and DCO registrations from the CFTC is a true full circle moment for our company,” Alexander Kane, Chief Executive Officer at Sporttrade, said in a release. “We founded Sporttrade on the principle that sports markets deserve the same high-performance structure, tight pricing, and regulatory integrity as traditional financial markets. By operating as both the exchange and the clearing venue, we are empowering broker partners with superior market quality while giving sophisticated traders the liquidity, transparency, and service they demand. In addition to our exchange business, we’re pleased to have begun clearing discussions with several exchanges who have understood Sporttrade to be a market leader on exchange and clearing technology for the past five years.”

Entering Event Contract Space

Receiving designation as a DCM and DCO clears the way for Sporttrade to enter the event contract space after it officially closed its sports betting offerings in June.

“Unlike many recent registrations, Sporttrade’s designation as a DCM and DCO allows it to support intermediated activity through Futures Commission Merchants (FCM), as well as supporting direct access participants, Introducing Brokers (IBs), and Independent Software Vendors (ISV) on its exchange, and to clear for other DCMs via its DCO,” the company noted in a release.

According to the company, it will soon begin offering sports event contracts with “a focus on improving quality of execution for brokers and their customers.”

Sporttrade is actively onboarding brokers with national distribution such as Fliff, which will route order flow from their customers to the exchange pending regulatory approval. The Sporttrade DCM plans to roll out its exchange and clearing capabilities in phases, according to a release, starting with select flow and liquidity providers.

The company announced in February it applied for DCM and DCO designation with the CFTC.

“Today marks the opening of an incredibly exciting chapter of the Sporttrade journey.” Kane said after the applications were filed. “The CFTC’s market-based regulatory framework enables Sporttrade to provide market participants an elevated level of efficiency, transparency, and consumer protection relative to what we’ve been able to offer to date.”

Halted Sports Betting Offerings

The company announced it would halt its sports betting markets this past May, closing all of its markets in licensed states by late June. While the company did not provide a reason for the decision to close its markets, it was widely assumed it did so to focus on event contracts.

All of its sports betting markets officially closed on June 26, 2026.