Peer-to-peer betting exchange platform ProphetX has applied to the Commodity Futures Trading Commission for registration as both a designated contract market and a derivatives clearing organization.
If approved, ProphetX would be the first regulated US exchange and clearinghouse designed specifically for sports-based event contracts. The dual filing aims to allow users to trade, clear, and settle sports outcome-based contracts under Commodity Futures Trading Commission oversight.
ProphetX’s application includes its proprietary request for quote parlay mechanism, which lets users construct and price multi-event combinations directly with counterparties. The firm said the system mirrors institutional trading protocols in traditional finance.
