ProphetX Seeks CFTC Approval to Establish the First Regulated Market for Sports Predictions

ProphetX Moves Towards Regulation in the Sports Prediction Landscape

In a major step for the burgeoning industry of sports predictions, ProphetX, a user-centered platform specializing in sports event wagering, has officially submitted its application to the U.S. Commodity Futures Trading Commission (CFTC). This application seeks dual registration as both a Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO). If approved, this move will position ProphetX as the first regulated exchange and clearinghouse in the United States dedicated specifically to sports-based event contracts.

Bridging Sports and Financial Derivatives

This initiative is a pivotal milestone in ProphetX’s mission to merge the worlds of traditional finance and sports betting. The goal is to create a vertically integrated marketplace allowing users to trade, clear, and settle event-driven contracts while adhering to stringent CFTC oversight. This regulatory filing underscores the company’s commitment to establish a compliant, transparent, and innovative market that holds the integrity of sports outcomes to the same standards as any other asset class.

Innovative Mechanisms for User Engagement

Central to ProphetX's filing is the introduction of their proprietary Request for Quote (RFQ) Parlay Mechanism. This feature empowers users to construct and price combinations of multiple events directly with their trading counterparts. This mechanism not only reflects the trading methods prevalent in conventional financial markets but also ensures flexibility, transparency, and competitive pricing for those dealing in event-based contracts.

Dean Sisun, the co-founder and CEO of ProphetX, remarked, "Our goal has always been to build a transparent, compliant, and innovative marketplace that treats sports outcomes with the same integrity and structure as any other asset class." This forward-thinking approach aims to legitimize user-driven sports trading and enhance participation at all levels.

Jake Benzaquen, another co-founder and the CMO, added, “The RFQ Parlay Mechanism is a fundamental innovation that allows for dynamic price discovery and efficient multi-leg exposure — features that have long existed in traditional markets but are entirely new to the sports derivatives domain.” This mechanism sets ProphetX apart, as it enables a sophisticated level of engagement in a field that is rapidly evolving.

The Path Ahead

As ProphetX moves forward with its regulatory review process, scheduled to extend through 2026, the company will collaborate closely with the CFTC and other stakeholders. Their goal is to ensure full compliance with standards governing market integrity and customer protection. This collaborative approach highlights the platform’s commitment to creating a safe and reputable environment for sports trading.

About ProphetX

Founded in 2018 and headquartered in New York City, ProphetX has quickly emerged as a leader in user-driven sports prediction markets. The platform allows individuals to actively engage with real-world sports outcomes through a transparent and fair competitive experience. The company’s mission is clear: to develop the world’s most trusted and innovative marketplace for sports-based event contracts. Through its efforts, ProphetX hopes to reshape how users perceive and interact with the sports betting landscape, setting new standards for compliance and engagement in the industry.

For media inquiries, interested parties can reach out to Charlie MacVicar, Chief of Staff at ProphetX, at email. Further information can also be accessed through their official website www.getprophetx.co. By spearheading this initiative, ProphetX is poised to transform not just its platform, but the entire ecosystem for sports predictions, paving the way for a more structured and regulated future.