The CFTC-regulated prediction market landscape

A CFTC-regulated exchange authorized to list and trade derivatives contracts (including event/prediction contracts) directly to the public. This is the core “we run our own regulated exchange” registration — e.g., Kalshi operates as a DCM.

A CFTC-regulated clearinghouse that clears and settles trades — it stands between buyer and seller, guarantees performance, and manages default risk. An operator with a DCO can self-clear its own trades rather than relying on a third party.

An intermediary registered with the CFTC that’s authorized to solicit or accept orders and hold customer funds/margin for trades on a DCM. This is the “handles customer money” registration — relevant for firms that custody trader funds rather than just providing access.

An intermediary that solicits or accepts customer orders but does not hold customer funds itself — it introduces the customer’s business to an FCM, which handles the money side. A lighter-weight registration than an FCM.