Sporttrade wins CFTC DCM and DCO registrations to serve US prediction markets

Sporttrade has secured federal approval to operate a prediction market exchange and clearinghouse in the United States, receiving both Designated Contract Market and Derivatives Clearing Organization registrations from the Commodity Futures Trading Commission in October 2026. The company will provide exchange and clearing infrastructure to brokers and other operators, and social sportsbook Fliff plans to route customer trades through Sporttrade once regulators approve that arrangement.

Federal approvals and timeline

The Commodity Futures Trading Commission registered Sporttrade DCO LLC on October 16, 2026, and designated Sporttrade DCM LLC on October 30, 2026. A Designated Contract Market operates the trading venue while a Derivatives Clearing Organization handles clearing and settlement; holding both registrations allows Sporttrade to manage trading and offer clearing services to other exchanges under CFTC oversight (regulation).

Sporttrade filed for federal registration at the beginning of 2026 and closed its sports betting operations in five US states in June 2026 to focus on prediction markets. The company originally launched in 2022 as a sports betting exchange and had operated in New Jersey, Arizona, Colorado, Iowa, and Virginia before ending sportsbook operations.

Business model and partners

Sporttrade plans to supply exchange infrastructure and clearing to brokers and other prediction market operators rather than concentrating solely on direct retail trading. The company intends to attract institutional traders, market makers and other exchanges seeking clearing and settlement services. Sporttrade will introduce services gradually, initially working with selected liquidity providers; its website currently accepts waitlist registrations, and the company has not confirmed a public launch date.

Social sportsbook Fliff is among the first companies preparing to use the exchange. Fliff will direct customer orders through Sporttrade once the regulatory arrangement between the firms gains approval from the relevant authorities.

Market context and positioning

Sporttrade's move positions it alongside existing US prediction market platforms including Kalshi, Polymarket, FanDuel Predicts and DraftKings Predictions. The federal approvals shift Sporttrade from state-by-state sportsbook licensing to a federal regulatory framework, though state-level legal challenges to sports event contracts continue in some jurisdictions.

"We are empowering broker partners with superior market quality while giving sophisticated traders the liquidity, transparency, and service they demand," Sporttrade CEO Alexander Kane said, describing the registrations as a return to the company's original vision.

Sporttrade says the dual registrations will enable competitive pricing and faster execution while helping brokers reduce costs. The company also confirmed it has begun clearing discussions with several exchanges that have regarded Sporttrade as a market leader in exchange and clearing technology for the past five years.

Next steps

Sporttrade will phase its services into the market and work with selected liquidity providers; a public launch date remains unannounced. The firm aims to offer both exchange trading and third-party clearing as core products for the US prediction market ecosystem. For readers tracking legacy operations, Sporttrade previously operated as a sportsbook in five states before the June 2026 closure (sports).