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Polymarket has filed three U.S. registration applications that could move it closer to offering margin trading on event contracts.
The applications remain pending and do not authorize the prediction market operator to launch leveraged products in the United States.
PM Derivatives Seeks NFA Registrations
The applications were submitted to the National Futures Association on July 3 through PM Derivatives LLC, an entity linked to Polymarket affiliate Coming Home GBA LLC.
The company is seeking futures commission merchant and related NFA registrations tied to futures and swaps activity, according to records cited from the NFA’s Background Affiliation Status Information Center database.
A futures commission merchant can accept customer funds used to margin futures and other regulated derivatives. Approval could allow Polymarket customers to post only part of a contract’s total value instead of fully funding each position in advance.
Margin Would Add Collateral and Liquidation Risks
Polymarket’s existing regulated clearing operation is permitted to clear fully collateralized futures, options on futures and swaps.
Under that structure, traders generally provide the full amount needed to cover a position’s maximum possible loss.
Margin trading would let users control larger positions with less capital upfront. It could also introduce liquidation, credit and collateral-management risks that fully funded contracts avoid.
CFTC Approval Would Still be Needed
NFA rules require futures commission merchants to collect initial and maintenance margin at levels no lower than those set by the relevant contract market. Registered firms also face financial reporting, capital and risk-control requirements.
Polymarket would still need the required approvals from the Commodity Futures Trading Commission before launching margined event contracts in the U.S. The timing of any decision has not been disclosed.
Filing Follows Polymarket’s US Return
Polymarket returned to the U.S. regulated market after acquiring QCEX, which included a CFTC-designated contract market and registered derivatives clearing organization. The exchange now operates as Polymarket US through QCX LLC, while its clearing business operates as Polymarket Clearing through QC Clearing LLC.
The regulated U.S. operation is legally separate from Polymarket’s international crypto-based platform. Polymarket US operates under CFTC oversight, while the international website states that it is not regulated by the agency.
Applications Remain Pending at NFA
The filings could help Polymarket compete more directly with other regulated prediction market operators if the registrations are approved. Approval would not guarantee an immediate launch.
Polymarket would still need margin levels, liquidation procedures, customer protections and risk controls acceptable to regulators. Polymarket has not disclosed when regulators may decide on the applications.
