"One entity holds approval as a Designated Contract Market, meaning it can list and facilitate trading in derivatives contracts. The other is registered as a Derivatives Clearing Organization, which manages the clearing and settlement process that ensures trades are finalized and obligations between parties are met."
"By bringing those capabilities under its own umbrella, Underdog plans to build a federally compliant prediction market platform where users can trade contracts tied to sports outcomes and other real-world events."
"The newly acquired licenses open the door for Underdog to operate its own exchange infrastructure. Instead of relying on third parties, the company would be able to list contracts directly and clear transactions through its own regulated entities."
Underdog, a New York-based sports gaming company, acquired Aristotle Exchange DCM, Inc. and Aristotle Exchange DCO, Inc., both registered with the U.S. Commodity Futures Trading Commission. These acquisitions provide the regulatory framework to operate a derivatives-style exchange. One entity functions as a Designated Contract Market, enabling the listing and trading of derivatives contracts, while the other operates as a Derivatives Clearing Organization, managing clearing and settlement processes. This acquisition allows Underdog to build its own federally compliant prediction market platform where users can trade contracts tied to sports outcomes and real-world events, rather than routing users to external exchanges.
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