ProphetX Advances US Regulatory Status with DCM and DCO Applications
ProphetX Takes a Major Step Toward Regulatory Approval
ProphetX, an innovative platform focusing on user-driven sports prediction markets, has submitted applications to the Commodity Futures Trading Commission (CFTC) seeking registration as both a Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO). This move marks a significant milestone in the company’s journey to integrate sports-based event contracts into regulated financial markets.
Aiming to Build a Vertically Integrated Marketplace
If the CFTC approvals are granted, ProphetX would become the first regulated exchange and clearinghouse in the United States designed exclusively for trading contracts tied to sports events. This dual registration is intended to enable the creation of a fully integrated platform that facilitates the legal trading of these event-based contracts.
One of the key features highlighted in ProphetX’s filing is their Request for Quote (RFQ) Parlay Mechanism. This tool allows users to negotiate and price combination bets (parlays) directly with counterparties, modeled after institutional trading methods common in traditional finance. The design aims to provide users with enhanced flexibility, transparent pricing, and competitive markets.
The company anticipates that the regulatory evaluation process will extend into 2026 and has expressed a strong commitment to maintaining full compliance and active cooperation with the CFTC throughout this period.
Why the CFTC Application Is a Natural Progression for ProphetX
Leadership at ProphetX view the CFTC filings as a critical development in reinforcing the legitimacy and long-term vision of their platform. Dean Sisun, co-founder and CEO, emphasized that these steps align with the company’s mission to create a transparent, compliant, and innovative service treating sports outcomes with the same level of rigor and structure as other financial asset classes.
“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, co-founder and Chief Marketing Officer, also highlighted the importance of the RFQ Parlay Mechanism, calling it a fundamental innovation that sets ProphetX apart. He noted this approach enables dynamic price discovery and efficient management of multiple-leg exposures—features common in traditional markets but new to sports derivatives.
“It 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,” said Benzaquen.
Company Background and Future Plans
ProphetX originally launched under the name Prophet Exchange in New Jersey in August 2022. However, in 2024, the company exited the New Jersey market and rebranded plans to relaunch across the U.S. as ProphetX, signaling a renewed focus on expanding their regulated presence nationwide.
