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Philadelphia-based financial technology company Sporttrade recently Office has partnered that they will apply for federal exchange and clearing registration, according to a press release on Wednesday.
The company announced the submission of applications to the Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO) along with Commodity Futures Trading Commission (CFTC).
“Today marks the opening of an incredibly exciting chapter in Sporttrade’s journey, one that facilitates a return to our original vision.” Said Alex Kane, the founder and CEO of Sporttrade.
“The CFTC’s market-based regulatory framework allows Sporttrade to provide market participants with a higher level of efficiency, transparency, and consumer protection relative to what we have offered to date.”
Sporttrade has now become the first company to apply for DCM registration along with operating a state-regulated betting platform.
New Jersey, Colorado, Iowa, Arizona, and Virginia are the five states where Sporttrade is a licensed betting operator.
“We originally built our venue under the assumption that the sports trading vertical would follow the trajectory of most other electronic markets, one toward efficiency and transparency driven by broker intermediation and institutional participation,” added Kane.
“Thus federal registration will allow us to finally unlock the full potential of our natively-built exchange, clearing, and broker technology in our quest to always put the customer first.”
Which platforms may register with the CFTC next?
While Sporttrade was the first company to apply Registration with the CFTC while operating a state-regulated betting platform, there are many willing to follow in his footsteps.
Novig, an exchange-affiliated sports-focused platform, entered the federal registry pipeline in order to become a registered exchange.
Other platforms, such as ProphetX, are also continuing to register with the CFTC in the near future as they bid to join Sporttrade. Legal expert Daniel Wallach called Sporttrade’s application to the CFTC a “death knell” for other regulated prediction markets, an attitude disputed by the company, writing to X: “In our view, it is impossible to comply with CFTC and state regulations simultaneously in the same state.”
The landscape is constantly evolving, seeing more and more platforms announce their intention to become a registered exchange in the coming months.
Featured Image: Sporttrade
The post Sporttrade applies to the CFTC to become a registered exchange first appeared in ReadWrite.
