River Finance LLC, an affiliate of prediction market broker River Markets, registered with the Commodity Futures Trading Commission as a futures commission merchant. The firm also joined the National Futures Association, which allows it to carry customer accounts and handle client funds. This regulatory step enables the company to launch its prime brokerage platform for institutional traders.
Building the Prime Brokerage Model
The new platform lets institutional clients manage capital, positions, and risk across multiple exchanges and clearinghouses through a single account. River Markets plans to support financing arrangements and permitted over-the-counter trading within this framework. Oscar Levy, cofounder and CEO, stated in a release that "access to event contracts isn’t enough." He added that institutions need to use capital efficiently and manage risk around the clock across different venues. That is the specific brokerage model the team is building.
Founded in May, River Markets serves hedge funds, sports funds, proprietary trading firms, and event-risk hedging companies. The firm has routed over 250 million contracts and secured $8.5 million in seed funding from top-tier venture capital firms. Combined trading volume across Kalshi, Polymarket US, and Polymarket’s international platform exceeded $500 billion in October. This massive scale creates demand for brokerage, clearing, financing, and risk-management services traditionally associated with derivatives markets.
Regulatory Context and Competitors
Polymarket-affiliated entities sought FCM and swap-firm registration through the NFA in July to enable U.S. customers to trade using borrowed capital. Kalshi affiliate Kinetic Markets received NFA approval as an FCM and swap firm in March. Last month, Blockchain.com applied for both a designated contract market license and FCM registration. Hyperliquid Strategies filed to become an FCM last week to carry U.S. client accounts for HIP-3 perpetual futures markets. This effort aims to bring permissioned Hyperliquid markets to U.S. customers within a regulated framework.
| Entity | Registration Status | Date |
|---|---|---|
| River Finance LLC | Registered FCM | Current |
| Kinetic Markets | Approved FCM | March |
| Polymarket Affiliates | Sought FCM | July |
| Blockchain.com | Applied for DCM/FCM | Last Month |
| Hyperliquid Strategies | Filed for FCM | Last Week |
The sheer volume of activity makes these regulatory moves necessary rather than optional. Institutions require clear pathways to access these markets without navigating fragmented infrastructure.
