ProphetX Files for DCM, DCO Status in the US

ProphetX, a user-driven sports prediction market, announced that it has submitted Commodity Futures Trading Commission (CFTC) applications to be registered as a Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO).

ProphetX Is in the Perfect Spot to Create a Vertically Integrated Marketplace

In its official announcement, ProphetX announced that, if approved, it will become the first regulated exchange and clearinghouse in the US designed for sports-based event contracts in particular. This would allow the company to continue its mission to bridge the gap between sports and traditional financial derivatives.

The dual registration as a DCM and DCO will position ProphetX in a perfect spot to create a “vertically integrated marketplace” that allows players to legally trade event-based contracts.

ProphetX highlighted its Request for Quote (RFQ) Parlay Mechanism as a key part of its filing. The company clarified that the mechanism allows users to make and price parlays directly with counterparties. ProphetX further explained that this mechanism is designed to be similar to institutional trading protocols used in traditional financial markets. What that means for users is that they can look forward to unparalleled flexibility, transparency and competitive pricing.

ProphetX concluded that it expects its regulatory review to continue through 2026. The company remained adamant in its commitment to working closely with the CFTC to ensure its absolute compliance.

The CFTC Application Was the “Next Logical Step” in Legitimizing ProphetX

ProphetX representatives commented on the monumental milestone that is the company’s CFTC application. According to Dean Sisun, the company’s co-founder and chief executive officer, this step is in line with ProphetX’s goal to build a transparent, compliant, and innovative product that “treats sports outcomes with the same integrity and structure as any other asset class.”

Filing for DCM and DCO status is the next logical step in legitimizing the future of user-driven sports trading.

Dean Sisun, co-founder & CEO, ProphetX

Jake Benzaquen, ProphetX’s co-founder and chief marketing officer, added that the RDQ Parlay Mechanism is a “fundamental innovation” that differentiates the company from its competition.

It [the solution] allows for dynamic price discovery and efficient multi-leg exposure – features that have long existed in traditional markets but are entirely new to the sports derivatives domain.

Jake Benzaquen, co-founder & CMO, ProphetX

ProphetX was formerly known as Prophet Exchange. The company launched in New Jersey in August 2022, but confirmed its exit from the Garden State in 2024. Later that same year, the company announced its plan to relaunch in the US as ProphetX.