Polymarket has received approval from the National Futures Association (NFA) for PM Derivatives, LLC to operate as a Futures Commission Merchant (FCM) on a fully collateralized basis.

The approval completes the three major components of Polymarket’s U.S. derivatives infrastructure across its affiliated entities: an exchange. P, QCX LLC (d/b/a Polymarket US); a clearinghouse, QC Clearing LLC; and now a broker, PM Derivatives.

As a Futures Commission Merchant, PM Derivatives adds an intermediated layer alongside Polymarket’s direct exchange model. The FCM authorization enables PM Derivatives to accept and carry customer orders and funds as a broker, under Commodity Futures Trading Commission and National Futures Association safeguards. Through PM Derivatives, Polymarket establishes an additional regulated pathway to work with distribution partners and to expand into jurisdictions where partnership with a regulated broker is required.

PM Derivatives will operate exclusively on a fully collateralized basis, with all positions funded in full at the time of trade. Any future margin offering would require additional regulatory approval. Polymarket will continue to work with its existing FCM and brokerage partners, who will keep offering access to Polymarket US markets to their own customers.

“Becoming an approved FCM is a foundational step for PM Derivatives,” said Nikhil Joshi, CEO, PM Derivatives. “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.”