Sporttrade Wins CFTC Approval as Exchange and Clearinghouse
Sporttrade has secured federal approval to run its own exchange and clearinghouse, a major step for the company that Sporttrade exited its regulated sports betting business in May 2026 to pivot toward the prediction markets space.
The Philadelphia company announced on November 3, 2026, that the Commodity Futures Trading Commission (CFTC) registered it as both a Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO), according to its PR Newswire release.
The dual registration lets Sporttrade list sports event contracts on its own exchange and clear them itself, rather than relying on a third-party venue for either function. The company says the exchange and clearing capabilities will roll out in phases, starting with select flow and liquidity providers.
What The CFTC Approved
The CFTC lists the two entities separately. Its DCM register shows Sporttrade DCM LLC as designated on October 30, 2026, and its DCO register shows Sporttrade DCO LLC as registered on October 16, 2026. The DCO entry says the clearinghouse is "permitted to clear fully collateralized futures, options on futures, and swaps."
Sporttrade announced the approvals on November 3, so the public announcement came after the dates on the CFTC listings.
A Broker-First Model With Clearing For Others
Sporttrade says its structure differs from many recent registrations. In the release, the company states that the designation "allows it to support intermediated activity through Futures Commission Merchants (FCM), as well as supporting direct access participants, Introducing Brokers (IBs), and Independent Software Vendors (ISVs) on its exchange, and to clear for other DCMs via its DCO."
That makes the platform a business-to-business venue first and foremost. Sporttrade says it is built for flow-providing intermediaries, sophisticated traders and market makers, and that it aims to deliver tight spreads and real-time execution across sports event contracts.
As a registered DCO, it can clear and settle transactions directly for self-clearing members and intermediaries while maintaining full collateralization. The company is also in early talks to clear for other exchanges.
CEO Alexander Kane said in the release that Sporttrade has "begun clearing discussions with several exchanges who have understood Sporttrade to be a market leader on exchange and clearing technology for the past five years."
Brokers Line Up Ahead Of Launch
Kane described the approvals as "a true full circle moment for our company," adding:
"We founded Sporttrade on the principle that sports markets deserve the same high-performance structure, tight pricing, and regulatory integrity as traditional financial markets."
Sporttrade says it is already onboarding brokers with national distribution, naming Fliff as one that will route customer order flow to the exchange pending regulatory approval. It adds that it is working with a pipeline of additional brokers and institutional partners, with more expected "in the coming months."
What Comes Next
No launch date has been announced, and the company has not said when customers will be able to trade. Bettors in regulated states should note that Sporttrade's earlier state-licensed consumer operation is closed, and the new exchange is aimed at brokers and professional participants rather than direct retail sign-ups.
What to watch next: the phased rollout to the first flow and liquidity providers, which brokers go live on the exchange, and whether any other exchanges sign on to use Sporttrade as their clearinghouse.
Refer to Cashback Terms & Conditions for full program terms.
