We are pleased to announce that we have acquired Small Exchange, a CFTC-approved Designated Contract Marketplace (DCM), from IG Group for $100 million. This move lays the foundation for the Company to launch a fully US-specific derivatives product suite and build a deep and sophisticated onshore footprint in the world’s largest capital markets.
The acquisition of Small Exchange advances our mission to create an integrated, high-performance trading environment. The DCM authorizes us to design and create markets for derivatives listed on U.S. exchanges under the supervision of the Commodity Futures Trading Commission (CFTC).
Arjun Sethi, Co-CEO of Kraken:
“Kraken’s acquisition of the CFTC-regulated designated contract market lays the foundation for a new generation of U.S. derivatives markets, designed for scale, transparency and efficiency.”
This step connects spot, futures and margin products within a single regulated liquidity system, reducing fragmentation, reducing funding latency and bringing onshore the type of access and performance that has largely existed offshore to date. Under CFTC oversight, Kraken can now consolidate clearing, risk, and matching into one environment that meets the same standards as the world’s largest exchanges.
This acquisition is part of a larger global infrastructure build-out. Kraken currently operates regulated derivatives exchanges in the United Kingdom, European Union, and United States. The system spans six fiat currencies and over 450 digital and traditional assets, all within one architecture.
Together, these elements create a network that moves collateral in real time, straightens exposures across jurisdictions, and reduces capital inefficiencies that have long held back U.S. traders. This isn’t about marketing or storytelling. It’s about building a better market structure. ”
Today’s acquisition follows a series of strategic milestones in the company’s U.S. derivatives expansion. Earlier this year, we acquired NinjaTrader, the leading US futures platform, allowing US-based customers to trade CME-listed crypto futures alongside spot cryptocurrencies in a unified interface. In October, we expanded the service to include a wider range of contracts, covering stocks, foreign exchange indices, and commodities such as oil and gold.
With this acquisition, the company continues its multi-year investment in the derivatives market. In 2019, we acquired Crypto Facilities, a UK FCA-regulated multilateral trading facility (MTF), and earlier this year we launched Europe’s largest regulated crypto futures product offering under the MiFID II framework.
Today, by securing the necessary licenses and infrastructure, we are laying the foundations for an institutional market as cryptocurrencies mature.
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