Kraken acquires a CFTC-regulated Designated Contract Market, expanding derivatives footprint in the U.S. market

We’re excited to announce we have acquired Small Exchange, a CFTC-licensed Designated Contract Market (DCM) from IG Group for $100 million. This move lays the foundation for us to launch a fully U.S.-native derivatives product suite, creating a deep, sophisticated onshore venue in the world’s largest capital market. The acquisition of Small Exchange advances our mission to build a unified, high-performance trading environment. A DCM authorizes us, under the oversight of the Commodity Futures Trading Commission (CFTC), to design and create markets for exchange-listed derivatives in the U.S. Arjun Sethi, Kraken co-CEO: “Kraken’s acquisition of a CFTC regulated Designated Contract Market creates the foundation for a new generation of United States derivatives markets. It is designed for scale, transparency and efficiency. This step connects spot, futures and margin products inside a single regulated liquidity system, reducing fragmentation, lowering funding latency and bringing onshore the kind of access and performance that has mostly existed offshore. Under CFTC oversight, Kraken can now integrate clearing, risk and matching into one environment that meets the same standards as the largest exchanges in the world. This acquisition is part of a larger build of global infrastructure. Kraken now operates regulated derivatives venues in the United Kingdom, the European Union, and the United States. The system spans six fiat currencies and more than 450 digital and traditional assets, all within one architecture. Together, these elements create a network that moves collateral in real time, nets exposure across jurisdictions, and reduces capital inefficiencies that have long held back U.S. traders. This is not about marketing or narrative. It is about building better market structure.” Today’s acquisition follows a series of strategic milestones in our U.S. derivatives expansion. Earlier this year, we acquired NinjaTrader, a leading U.S. futures platform, enabling U.S.-based clients to trade CME-listed cryptocurrency futures, alongside spot crypto in a unified interface. In October, we broadened this offering to include a broader range of contracts, covering equities, FX indices and commodities such as oil and gold. This acquisition continues our multi-year investment in derivatives markets. In 2019, we acquired Crypto Facilities, a U.K. FCA-regulated Multilateral Trading Facility (MTF), and earlier this year launched Europe’s largest regulated crypto futures offering under the MiFID II framework. By securing the necessary licensing and infrastructure today, we are laying the groundwork for institutional-grade markets as crypto matures. Explore futures on Kraken The post Kraken acquires a CFTC-regulated Designated Contract Market, expanding derivatives footprint in the U.S. market appeared first on Kraken Blog .