A CFTC-regulated exchange authorized to list and trade event contracts. Kalshi, ForecastEx, and CME Group are DCMs.
A Designated Contract Market (DCM) is an exchange licensed by the CFTC to list and facilitate trading of futures, options, and event contracts. DCMs must meet strict requirements for market surveillance, customer fund segregation, and reporting.
In the prediction market space, Kalshi and ForecastEx are standalone DCMs. DraftKings and FanDuel route contracts through CME Group (a DCM). Robinhood currently routes through Kalshi but is acquiring its own DCM.
Trading on a DCM provides legal protection and regulatory oversight that non-DCM platforms don't offer.
The US federal agency that regulates prediction markets. CFTC-regulated platforms offer legal event contracts in all 50 states.
Prediction MarketAn exchange where participants trade contracts based on the outcome of future events, with prices reflecting collective probability estimates.
Event ContractA contract that pays $1 if an event occurs and $0 if it doesn't. The price reflects the market's implied probability.