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- Novig today announced it received designation from the Commodity Futures Trading Commission
- Novig received Designated Contract Market designation from the commission
- Company will now be able to operate as a federally regulated prediction market
Novig will soon be able to operate as a federally regulated prediction market operator after today receiving Designated Contract Market designation from the Commodity Futures Trading Commission.
Novig today announced it received the designation from the Commodity Futures Trading Commission (CFTC), positioning itself to expand nationwide under a single regulatory framework as a Designated Contract Market (DCM).
“Novig is the best place to trade sports. From day one, our vision has been to operate within a single national framework that raises the standard for the entire category,” Jacob Fortinsky, co-founder and CEO of Novig, said in a press release announcing the designation.
Now a Federally-Regulated DCM
Novig applied for DCM status with the CFTC in January of this year. According to the company, the CFTC approval “represents one of the fastest designations of its kind in CFTC history and reflects growing momentum behind exchange-based models that prioritize fairness, transparency, and integrity.”
The company announced its nationwide rollout of event contracts will commence this summer.
Novig will maintain its 21-and-up age requirement as it is now able to operate across all 50 states. The company noted it welcomes new CFTC-regulated safeguards to its platform that are “more commonly associated with financial markets, including enhanced market surveillance, protections against manipulation and insider activity, and comprehensive compliance standards designated to protect participants.”
“Novig is the first sports prediction market built by sports traders for sports traders, and the momentum we’ve seen to date reinforces that there is real demand for a more efficient, and ultimately more profitable way for sports fans to participate in sports markets. Federal oversight allows us to scale within a framework built on trust, transparency, and fairness. By aligning incentives with users and removing the structural disadvantages of legacy betting platforms, we’re building a fundamentally different model where participants aren’t playing against the house, but operating within a fair and transparent market,” Fortinsky said.
Novig will now have to participate with the likes of Kalshi, Polymarket, and the recently-approved ProphetX in the crowded work of prediction markets.
On Heels of ProphetX Announcement
Novig’s announced came less than a week after the CFTC approved ProphetX’s applications to register as a Designated Contract Market (DCM) and a Derivatives Clearing Organization (DCO).
ProphetX submitted applications to the CFTC in November 2025. It also submitted a comment letter responding to the CFTC’s Advance Notice of Proposed Rulemaking on prediction markets in April 2026.
According to ProphetX, by obtaining dual registration as a DCM and DCO, the company intends to “operate a vertically integrated marketplace that allows users to directly trade, clear, and settle event-based contracts under comprehensive CFTC oversight.”
ProphetX also noted its regulated market structure includes a proprietary request for quote parlay mechanism, which will allow users to construct and price multi-event combinations.