Polymarket's US branch, QCX LLC, has initiated a self-certification process with the Commodity Futures Trading Commission (CFTC) for a groundbreaking sports trading product. This new offering aims to merge multiple event outcomes into a single contract, expanding the platform's capabilities beyond traditional single-event markets.
Filed on May 20, the self-certification request introduces Combinatorial Athletic Outcome Contracts. These contracts will enable traders to consolidate two or more individual sports event contracts into one unified position.
According to the details in the filing, all components of the contract must successfully settle for any payout to occur. If any part fails, the entire position will be rendered worthless, functioning similarly to conventional parlays.
Each contract is proposed to have a nominal value of $1, with pricing potentially set in fractions of a cent. Additionally, the proposal includes an early termination feature, allowing the exchange to close a position prior to its scheduled maturity if one of the underlying components loses value before expiration.
The filing also incorporates measures to mitigate concerns regarding nonpublic information. Individuals under the age of 18 will be barred from trading these contracts, as will athletes, coaches, front-office staff, and team owners associated with the events covered by the contracts. This restriction will also apply to the immediate family members of these individuals.
Alongside the contract submission, Polymarket has submitted a Freedom of Information Act request to secure permanent confidentiality for the analytical materials and strategic documents included in their filing. The company argues that public access to these materials could provide competitors with insights into proprietary methodologies, potentially harming its market position.
This proposed product emerges as Polymarket seeks to re-establish its presence in the US market after several years of absence. In mid-May, the company began granting access to its US exchange for Apple device users, concluding a waitlist that lasted over six months. This phased rollout on iOS followed Polymarket's acquisition of QCEX, which enabled it to operate under US regulatory oversight.
Polymarket had previously exited the US market due to regulatory actions linked to undisclosed derivatives trading activities. In 2022, the company reached a settlement with the CFTC, resulting in a $1.4 million fine.
As Polymarket makes its return, it faces competition from rival prediction market operator Kalshi, which has captured a significant share of the market during Polymarket's absence, controlling approximately 90%. However, interest in Polymarket's comeback appears strong, with over 1.4 million users signing up for the waitlist before access was granted to US iOS users.