Tolt Strategies advises Novig on record CFTC approval for prediction market launch

New York-based Novig began trading on Wednesday through its wholly owned exchange after receiving DCM status, allowing it to offer federally regulated sports prediction markets under a single national regulatory framework. Tolt said the DCM application and approval process was among the fastest in the CFTC's history.

"Congratulations to Novig on the launch of its DCM sports prediction marketplace," said Dorothy DeWitt, founder and chief executive of Tolt Strategies, in a release. "We were honoured to play a role in its swift approval by the CFTC and introduction to partners that support the exchange in meeting its obligations."

She added: "Novig has achieved two critical and challenging milestones: achieving CFTC approval in record time, and thereafter successfully launching the exchange."

Regulatory support

Novig received CFTC approval as a designated contract market in June, allowing it to operate across all 50 US states under federal oversight. At the time, the company said it would implement safeguards more commonly associated with financial markets, including enhanced market surveillance, protections against manipulation and insider activity, and comprehensive compliance standards designed to protect participants.

"Dorothy and the Tolt team provided critical strategy, tactics, operational know-how and relationships that helped us get approved in record time as well as operate with best practices going forward," said Elie Mishory, chief regulatory and legal affairs officer at Novig, in a release.

He added: "Their ability to speak the language of the CFTC and deep understanding of the nuances in this industry enabled us to put into place the processes, systems and governance that have positioned us for success as we embark on this new chapter."

The latest milestone follows Novig's deployment of Eventus' Validus trade surveillance platform last month, strengthening surveillance capabilities as the exchange prepared for its nationwide launch under CFTC oversight.