Sporttrade wins CFTC approval to operate US prediction markets
DCM and DCO registrations completed; Fliff to route customer orders through Sporttrade
Key Takeaways
- The Commodity Futures Trading Commission registered Sporttrade DCO LLC on 16 October and designated Sporttrade DCM LLC on 30 October.
- Sporttrade closed its sports-betting operations in New Jersey, Arizona, Colorado, Iowa and Virginia in June 2026 to focus on prediction markets.
- Fliff plans to route customer orders through Sporttrade once the regulatory arrangement is approved.
- The company will seek to provide exchange and clearing services to brokers, institutional traders, liquidity providers and other exchanges.
Sporttrade obtained federal approval from the Commodity Futures Trading Commission to operate a prediction-market exchange and a clearinghouse in the United States. The CFTC registered Sporttrade DCO LLC on 16 October and designated Sporttrade DCM LLC on 30 October; Fliff plans to route its customers' trading through Sporttrade once regulators approve the arrangement.
Regulatory and operational transition
The dual authorisation — Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO) — completes a transition the company began in 2026. Sporttrade closed its sports-betting operations in five states in June 2026 to focus on federally regulated prediction markets. Before that decision the company had operated as a sportsbook since its 2022 launch and had a presence in New Jersey, Arizona, Colorado, Iowa and Virginia.
Holding both the DCM designation and the DCO registration allows Sporttrade to manage contract exchange activity and to offer clearing and settlement services to third parties. A DCM runs the exchange where trades occur; a DCO handles clearing and settlement.
Business model targeting brokers and liquidity providers
Sporttrade does not plan to limit itself to direct retail trading. The company will seek to provide infrastructure to brokers and other prediction-market operators, and to attract institutional traders, market makers and other exchanges seeking clearing and settlement services. Fliff is among the first companies planning to use the exchange; the social-betting app will send customer orders through Sporttrade instead of operating the underlying market.
CEO Alexander Kane said:
“We are empowering broker partners with superior market quality while giving sophisticated traders the liquidity, transparency, and service they demand.”
Kane added that Sporttrade has also begun clearing talks with several exchanges that have viewed the company as a leader in exchange and clearing technology over the past five years.
Rollout and competitive position
Sporttrade will introduce its services gradually and will initially work with selected liquidity providers; its website is accepting sign-ups for a waitlist, but the company has not confirmed a public launch date. Federal approval shifts the regulatory framework from maintaining state betting licences to operating under CFTC oversight. Relevant readers can find related marketplace coverage on our [sports](/sports) and [regulation](/regulation) sections.
However, federal approval does not resolve all legal disputes: several states continue to question whether certain contracts tied to sporting events should be governed by state gambling laws rather than federal derivatives regulation.
Sporttrade joins a growing competitive field that includes Kalshi, Polymarket, FanDuel Predicts and DraftKings Predictions.
Frequently Asked Questions
What CFTC registrations did Sporttrade receive and when were they issued?
The CFTC registered Sporttrade DCO LLC on 16 October and designated Sporttrade DCM LLC on 30 October. The DCO registration permits the firm to perform clearing and settlement; the DCM designation allows it to operate the exchange.
Why did Sporttrade close its sports-betting operations in 2026?
Sporttrade closed its sports-betting operations in June 2026 to concentrate on prediction markets under federal regulation. Before that change the company had operated as a sportsbook since launching in 2022 across New Jersey, Arizona, Colorado, Iowa and Virginia.
How will Fliff use Sporttrade’s infrastructure?
Fliff intends to direct its customers' orders through Sporttrade rather than operating the underlying market, subject to regulatory approval of the arrangement. Fliff is listed among the early companies preparing to use the exchange.
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About the author
Renata Quiroga
Betting Markets Correspondent
Renata Quiroga covers sports betting and prediction markets — sportsbook launches, odds technology, event contracts, and the regulatory calls that decide what can be bet on and where. The reports open with the product or the ruling, name operators and platforms precisely, and explain the mechanics without needless jargon. When a book enters a Latin American market or a prediction exchange lists a contested contract, Renata Quiroga reports what changes for the bettor.
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