The National Futures Association has approved PM Derivatives LLC, a subsidiary of Polymarket, to operate as a futures commission merchant, according to ChainCatcher. An NFA spokesperson said the unit has met all requirements for FCM registration, but it still cannot begin futures brokerage operations without approval from the U.S. Commodity Futures Trading Commission. If that approval is granted, PM Derivatives would be able to act as an intermediary that accepts customer orders and funds. Polymarket said the subsidiary plans to use a fully collateralized model, requiring customers to post sufficient funds for their entire positions at the time of execution. The CFTC is still investigating Polymarket.
The National Futures Association has approved PM Derivatives LLC, a Polymarket subsidiary, to operate as a futures commission merchant, according to ChainCatcher.
An NFA spokesperson said the subsidiary has satisfied all requirements for FCM registration. Still, it cannot actually begin futures brokerage operations unless it also receives approval from the U.S. Commodity Futures Trading Commission.
If approved by the CFTC, PM Derivatives would be allowed to act as an intermediary that accepts customer orders and customer funds. Polymarket said the unit plans to use a fully collateralized model, meaning customers must provide enough funds to cover their full positions at the time a trade is executed.
The CFTC is currently investigating Polymarket.
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