River Finance LLC, an affiliate of River Markets, has registered with the U.S. Commodity Futures Trading Commission as a futures commission merchant. According to Odaily, the company has also joined the National Futures Association, enabling it to hold customer accounts and process customer funds.
River Markets is developing a prime brokerage platform for prediction markets that would let institutional traders manage funds, positions and risk across multiple trading platforms and clearinghouses through one account. The company also plans to support financing arrangements and permitted over-the-counter trading.
River Markets co-founder and CEO Oscar Levy said institutional participants need more than access to event contracts, including the ability to use capital around the clock and manage risk across trading venues. Founded in May this year, the company serves hedge funds, sports funds, proprietary trading firms and businesses hedging event risk. River Markets said it has routed more than 250 million contracts and raised $8.5 million in a seed round.