UK Betting Exchange Smarkets Applies for U.S. CFTC Trading and Clearing Licenses

Smarkets, the UK’s second-largest betting exchange, seeks approval from the CFTC (U.S. derivatives regulator) to operate as both a Designated Contract Market and a Designated Clearing Organization in the United States.

Summary

UK-based betting exchange Smarkets has formally applied to the U.S. Commodity Futures Trading Commission (CFTC) for Designated Contract Market (DCM) and Designated Clearing Organization (DCO) licenses, according to Forbes. As the second-largest exchange in the UK, Smarkets aims to expand into the U.S. derivatives and financial betting market under regulatory oversight. Obtaining these licenses would authorize it to list futures-style contracts and clear trades within a regulated U.S. environment, marking a strategic expansion of European gaming and financial prediction platforms into American markets.

Terms & Concepts
  • Commodity Futures Trading Commission (CFTC): The U.S. government agency that oversees derivatives markets, including futures and options, to prevent fraud and manipulation.
  • Designated Contract Market (DCM): A regulated exchange in the U.S. where futures and options contracts are traded under CFTC supervision.
  • Designated Clearing Organization (DCO): An entity approved by the CFTC to handle the clearing and settlement of derivatives transactions, reducing counterparty risk.