Polymarket: NFA approves PM Derivatives as FCM
Polymarket announced on 3 November 2026 that the National Futures Association (NFA), the US self-regulatory body for the derivatives industry, has approved its affiliate PM Derivatives, LLC as a futures commission merchant (FCM). The company states the approval is on a fully collateralised basis, and the NFA approval date was not given in the announcement. An FCM is the type of broker that accepts and carries customer orders and funds for futures trading.
The approval completes a three-part structure. QCX LLC, which trades as Polymarket US, is the exchange, and QC Clearing LLC is the clearinghouse, which stands between buyers and sellers to guarantee trades. PM Derivatives is now the broker. Polymarket runs prediction markets, where users trade contracts on the outcome of real-world events.
In practical terms, PM Derivatives can accept customer orders and hold customer funds directly. It will operate exclusively on a fully collateralised basis, meaning positions are funded in full at the time of trade. Any margin offering would need additional regulatory approval. Nikhil Joshi, CEO of PM Derivatives, said: “Becoming an approved FCM is a foundational step for PM Derivatives.” He added: “PM Derivatives’ registration as an FCM establishes its regulatory status as an intermediary, enabling it to accept customer orders and hold customer funds. Operating in this capacity entails ongoing obligations for capital adequacy, customer fund protection, risk management, and regulatory compliance.”
| Requirement | What changes |
|---|---|
| Exchange | QCX LLC (d/b/a Polymarket US), unchanged |
| Clearinghouse | QC Clearing LLC, unchanged |
| Broker | New: PM Derivatives, LLC, approved by the NFA as an FCM (per Polymarket) |
| Margin | Not offered; would need additional regulatory approval |
| Existing FCM and brokerage partners | Unchanged; they keep offering access to their own customers |
The only new element is the broker; the rest of the stack stays as it was.
Brokers and platforms that currently give their customers access to Polymarket US markets are the most directly affected. Polymarket now has a regulated broker of its own that can take customer orders and funds directly, which could compete for that customer flow. Polymarket says existing FCM and brokerage partners keep offering access to their own customers. Earlier LeapRate coverage reported ICE’s $2 billion investment in Polymarket and a further $600 million completed.
No launch date or timeline was given for PM Derivatives to start taking customer business. Polymarket says it is building toward new products, which will be subject to regulatory approval.
