Polymarket unit wins NFA approval to become futures broker

Polymarket, the large US online prediction market, received approval from the National Futures Association for its unit PM Derivatives LLC to operate as a futures commission merchant, according to the NFA's website and a Polymarket statement dated November 3, 2026. The approval paves the way for expansion if the government also signs off.

Polymarket will still need approval from the Commodity Futures Trading Commission to run an FCM broker. The NFA endorsement opens the door for further Polymarket expansion at a time when it and other prediction markets face scrutiny and legal headwinds. The markets allow traders to bet on real-world events, including sports, government policy announcements and elections.

Aided by supportive policies under President Donald Trump's second administration, the industry has grown over the past two years. The FCM approval would give Polymarket, which currently runs a CFTC-registered exchange and an offshore platform, the license to act as an intermediary, carrying customer orders and funds. PM Derivatives plans to operate on a fully collateralized basis, with all positions funded in full at the time of trades, the company said.

In the statement, PM Derivatives Chief Executive Nikhil Joshi described the approval as a "foundational step" for the firm. Polymarket has been a major player in prediction markets' growing popularity, but has faced government scrutiny over some of its marketing and other practices. The CFTC is currently investigating the firm.