ExchangeCFTC regulated
What is Novig? Who runs it, how it’s regulated, and what traders should know
As of October 22, 2026, Ludlow Exchange, LLC, doing business as Novig, offers trading nationwide except Nevada, Arizona and Michigan, by your physical location when you trade. CFTC status: designated contract market since June 16, 2026. A 2026 Novig year can span a sweepstakes period, before August 4, 2026, and exchange trading after it, each reported differently. Novig’s Help Center 1099 rule: a 1099-MISC when calendar-year redemptions reach $2,000 and net redemptions exceed $0. Each guide below covers one part of a Novig year, sourced and dated.
By Owen Monagan, Founder & CEOUpdated
Novig at a glance
Checked October 25, 2026- Help Center 1099 rule
- A 1099-MISC when calendar-year redemptions reach $2,000 and net redemptions exceed $0 Source
2026: two periods
A 2026 Novig year has two periods: sweepstakes, then a CFTC exchange.
Novig changed what it offers partway through 2026, and each period comes with its own documents.
Before August 4, 2026, Novig ran a sweepstakes model, per its Help Center. Its Tax Reporting article describes a 1099-MISC when calendar-year redemptions reach $2,000 and net redemptions exceed $0, and calls that the standard reporting method for sweepstakes platforms. The form reports net redemptions (redemptions minus purchases), not net trading profit.
Novig’s article ties the form to the IRS reporting threshold. For payments made in 2026 that threshold is $2,000: the One Big Beautiful Bill Act (Pub. L. 119-21, §70433) raised it from $600 in IRC §6041(a) for payments made after December 31, 2025, so for 2025 payments it was $600. The change is in federal reporting law, not sweepstakes law, and income is taxable whether or not a form arrives. The statute as amended: IRC §6041.
Ludlow Exchange, LLC, doing business as Novig, has been a designated contract market since June 16, 2026. Trades on it are event contracts on a CFTC-regulated exchange, and members become Clearing Members of Bitnomial Clearinghouse, LLC. Novig has not said whether its 1099-MISC rule carries over to those trades, or whether the 2026 form combines both periods.
There is no IRS guidance on how event contracts are taxed. Of the people we’ve seen file, the most common routes are standard capital on Form 8949, Section 1256 on Form 6781, and gambling on Schedule 1, each filed from the positions rather than the form total. Novig taxes works one year through each route, How to file Novig taxes gets the data for both periods, and Novig legal status covers the court and state actions.
What each guide covers
What each Novig guide covers.
One page per question, each built from Novig’s own documents.
Novig tax forms covers the 1099-MISC and when it arrives. Novig fees covers the fee formula by product and the Maker Credit Program. Novig trade data covers where each period’s history comes from, and Novig API keys covers which key does what, and what Realize does with one.
Novig guides
What to know about Novig.
Each part answers one question about Novig from Novig’s own documents and public filings, with the date we checked them.
- How Novig trades are taxedTaxes One worked year through the three common ways people file, and where Novig’s 1099, fees, Maker Credits and Early Payouts land.
- What Novig sends you at tax timeTax forms The tax documents Novig describes, what each one reports, and when it arrives.
- Novig trade history and statementsTrade data Where a full Novig trade history comes from, and what each source covers.
- Novig fees and Maker CreditsFees The fee formula by product, how fees are rounded, and how Maker Credits are paid.
- How to file Novig taxesHow to file The filing procedure for a Novig year, step by step, under each common route.
- Where Novig is availableLegal Which states Novig serves, who may trade there, the federal cases its operator has filed and the state letters it received.
- Novig API keysAPI key The kinds of Novig API key, and what each one can read or do.
Further reading3 guides
Read further.
How each common treatment works, for any prediction-market year.
- What Is the Section 1256 60/40 Rule? Section 1256 contracts get a blended 60% long-term / 40% short-term rate, mark-to-market and a loss carryback. Why it may matter to prediction-market traders.
- Prediction Market Capital Gains and Form 8949 Filing Kalshi and Polymarket trades as capital gains: one Form 8949 row per closed position, settlement as a sale, the $3,000 loss limit and the carryforward.
- Are Prediction Markets Taxed as Gambling? No IRS guidance says Kalshi or Polymarket contracts are wagering. What gambling treatment puts on the return for a year, set beside standard capital and Section 1256.
Price your Novig year three common ways.
Connect Novig and Realize prices your year under each common way people file.