ProphetX
First sports-native exchange approved as both a CFTC DCM and DCO, clearing its own event contracts.
Regulatory posture
- Dual DCM and DCO registration granted June 11, 2026 lets it trade, clear and settle sports event contracts on one vertically integrated venue, without an external clearinghouse.
- Product strategy centres on an RFQ-based parlay mechanism for sports event contracts, sold B2B as well as direct.
- Reached CFTC registration by abandoning a sweepstakes model in 2025, having started in 2018 as a UK-licensed peer-to-peer sports event marketplace.
- Sports-only contract set puts it squarely inside the state gaming-law dispute now before multiple federal circuits; named alongside eight other operators in Connecticut's September 10, 2026 cease-and-desist order, its first state enforcement action on this tracker.
Licensing
- DCM
- Approved (June 11, 2026)
- Other
- DCO approved (June 11, 2026) — clears its own contracts
- State coverage
- Named in Connecticut's nine-operator cease-and-desist order (Sept 10, 2026)
Filings on the tracker (1)
Licensing Tracker- DCMProphetXApprovedJun 11, 2026
Products
Development timeline
Dated developments compiled for this operator, newest first. Select an entry for the full detail.
- September 10, 2026
Named in Connecticut's nine-operator cease-and-desist order
Connecticut's Department of Consumer Protection ordered ProphetX, alongside eight other operators, to stop offering sports event contracts to Connecticut residents and to let existing customers withdraw funds, part of a nearly-30-subpoena escalation of the state's enforcement campaign (enf-ct-dcp-nine).
- July 28, 2026
Closed a $35 million round led by Parlay Capital and Data Point Capital
ProphetX closed a $35 million round led by Parlay Capital and Data Point Capital, with several smaller funds participating. Proceeds go toward product development and liquidity for its B2B/RFQ parlay mechanism; the company is targeting a tripling of 2026 trading volume.
- June 11, 2026
CFTC approved ProphetX as the first sports-native dual-registered DCM and DCO
The CFTC approved ProphetX's applications for registration as both a Designated Contract Market and a Derivatives Clearing Organization, making it the first sports-native, directly clearing prediction-market exchange in the United States. The dual registration distinguishes it from KalshiEX and Robinhood Derivatives, which clear through the Options Clearing Corporation or third-party DCOs.
- November 10, 2025
Filed both DCM and DCO applications after pivoting away from a sweepstakes model
Regulatory history
Recent activity
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