NFA Approves Polymarket Unit to Operate as Futures Broker

The National Futures Association approved PM Derivatives LLC, a unit of the prediction market Polymarket, to operate as a futures commission merchant. This designation allows the unit to serve as an intermediary by carrying customer funds and orders on a fully collateralized basis.

While the industry group has granted its approval, the company must still obtain final authorization from the United States Commodity Futures Trading Commission to officially run the broker. Nikhil Joshi, Chief Executive of PM Derivatives, described the regulatory approval as a "foundational step."

The development occurs as prediction markets grow during the second administration of Donald Trump. Despite this progress, the United States Commodity Futures Trading Commission continues to investigate Polymarket regarding its business practices and marketing.