The Small Exchange
The Small Exchange is a CFTC-registered Designated Contract Market in Chicago that operates a regulated US futures and options venue offering small-sized, standardized contracts for retail traders, clearing members, and liquidity providers; it was acquired by Payward Inc. (Kraken) in October 2025.
- Company typePrivate
- Founded2017
- HeadquartersChicago, United States
- Headcount11–50
- GTM typeB2B and B2C
- OfferingSoftware
What The Small Exchange does
The Small Exchange, Inc. is a CFTC-registered Designated Contract Market (DCM) headquartered in Chicago, Illinois, that operates a regulated US derivatives trading venue for small-sized futures and options contracts. Founded in 2017, the company's core product framework is built on three design principles: "Small" (reduced contract sizes for capital efficiency versus stocks and traditional futures), "Standard" (uniform tick sizes and expiration dates across all listed products), and "Simple" (holistic representations of financial markets to reduce learning curve). The flagship product is the Small S5C Equity Index Futures, with the platform functioning as the matching and clearing infrastructure layer rather than a direct-to-trader brokerage.
The company monetizes primarily through transaction fees on derivatives trades executed on its DCM, with revenue mechanics dependent on trading volume across retail self-serve users, clearing member firms, and liquidity providers participating in the Liquidity Provider Incentive Program. Its customer base spans retail traders seeking capital-efficient alternatives to equities, clearing and corporate member firms that distribute Small Exchange markets, and institutional market makers. Historically the company raised approximately $29 million in disclosed funding from investors including Peak 6, tastylive, Citadel, Jump Capital, Interactive Brokers Group, and PhillipCapital, with operations conducted from its principal office at 222 North LaSalle St., Ste 400 in Chicago.
Following its October 2025 acquisition by Payward Inc. (parent of cryptocurrency exchange Kraken) for $100 million from prior owner IG Group, The Small Exchange operates as a wholly-owned subsidiary within Kraken's broader financial infrastructure platform. The acquisition positions the DCM as Kraken's regulated US derivatives venue, intended to integrate alongside other acquired platforms (NinjaTrader, Breakout, Capitalise) to form a unified multi-asset trading ecosystem spanning traditional and crypto markets.
The Small Exchange firmographics
Firmographics- Name
- The Small Exchange
- Legal name
- Small Exchange, Inc.
- Website
- https://thesmallexchange.com
- Company type
- Private
- Founded year
- 2017
- Operating status
- Acquired
- Headcount range
- 11–50 employees
- Short description
- The Small Exchange is a CFTC-registered Designated Contract Market in Chicago that operates a regulated US futures and options venue offering small-sized, standardized contracts for retail traders, clearing members, and liquidity providers; it was acquired by Payward Inc. (Kraken) in October 2025.
- Ownership category
- akta.pro rank
The Small Exchange industry classification
Industry- Product category
- Futures and Options Exchange Platform
- NAICS
- Securities and Commodity Exchanges (523210)
- SIC
- Security & Commodity Brokers, Dealers, Exchanges & Services (6200)
- akta.pro primary industry
- Listed Derivatives CCPs (Futures & Options) (FSAFAFAA)
Keywords
Where The Small Exchange is headquartered
LocationHeadquarters
- HQ city
- Chicago
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
The Small Exchange business model
Business model- GTM type
- B2B and B2C
- Offering type
- Software
- Cost components
- Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure, Others
Revenue model
- Derivatives Trading Fees: Transaction-based revenue from futures and options trading executed on the Small Exchange DCM platform. Traders pay fees per trade executed.
Go-to-market motion1 record
Distribution channels4 records
Marketing channels6 records
The Small Exchange product offering
Product offeringCore offering
The Small Exchange operates a CFTC-registered Designated Contract Market (DCM) that offers small-sized futures and options products designed to make derivatives trading more accessible to retail traders. The platform standardizes contract tick sizes and expiration dates across all products to simplify trading, and serves both individual traders directly and institutional participants (clearing firms, corporate members, liquidity providers) as partners and market makers.
Product overview
The Small Exchange is a Designated Contract Market (DCM) registered with the CFTC that offers a unified platform for trading small-sized futures and options products. The core product line includes Small S5C Equity Index Futures and related options contracts, all designed around the principles of being 'small' (reduced contract size for capital efficiency), 'standard' (shared tick size and expiration dates across products), and 'simple' (holistic representations of financial markets). The company operates as a wholly-owned subsidiary of Payward Inc. (Kraken's parent company) following its acquisition in October 2025.
Differentiator
Problem solved
Functional benefit
Products and services
- Small S5C Equity Index Futures Equity index futures contract with reduced (small) contract size offering capital efficiency for retail traders while retaining standard market characteristics. Listed and traded on The Small Exchange DCM.
- Small Exchange Options Contracts Options contracts traded on The Small Exchange DCM, sharing standardized tick sizes and expiration dates with the Small futures product family, designed for retail accessibility.
- Small Exchange Trading Platform The regulated DCM platform that lists and matches orders in Small futures and options products; operated by Small Exchange, Inc. and accessed by retail traders through clearing and non-clearing member firms.
Companies that use The Small Exchange
Customer profileSegments3 records
Ideal customer profiles4 records
The Small Exchange technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature3 records
The Small Exchange partnerships and signals
Strategic signalPartnerships
Two partnerships are on record, tiered core and former_parent.
- Payward Inc. (Kraken)coreSmall Exchange was acquired by Payward Inc., parent company of cryptocurrency exchange Kraken, for $100 million. The acquisition enables Kraken to operate a regulated futures and options venue under CFTC oversight, creating a fully US-native derivatives platform. Small Exchange operates as a standalone CFTC-registered Designated Contract Market under the Kraken/Payward corporate umbrella.
- IG Groupformer_parentIG Group sold Small Exchange Inc. to Payward Inc. for $100 million in October 2025. Prior to the acquisition, Small Exchange was part of IG Group's portfolio, having been sold to IG in a previous transaction. The disposal enhanced IG's crypto capabilities and regulatory capital.
Scale indicators2 records
Recent moves6 records
Expansion highlights3 records
The Small Exchange competitors and assessment
Company assessmentBroad incumbents
- CME Group: The dominant US futures exchange operator, listing micro- and e-mini equity index futures that compete head-to-head with Small Exchange's S5C product. Comparable on regulated derivatives venue operations, vastly larger scale.
- Cboe Global Markets: Operates regulated US exchanges for futures and options, including VIX and equity index products. Overlaps directly with Small Exchange's listed derivatives venue business model and customer base.
- Interactive Brokers: Major retail and institutional brokerage with extensive futures and options execution capabilities; also an investor in Small Exchange. Competes for the same retail derivatives trader and acts as a distribution channel partner.
- Binance.US: US-regulated crypto trading venue with growing derivatives offering; competes for the same modern retail trader audience and overlaps with Kraken/Small Exchange in US crypto-derivatives positioning.
Direct peers
- tastytrade (IG Group): Former sister company under IG Group ownership; retail-focused futures and options brokerage. Overlapping retail trader customer base, educational content strategy, and product positioning around accessible derivatives.
- LedgerX (MIAX Futures): CFTC-regulated derivatives exchange and clearing organization, now part of MIAX. Directly comparable as a smaller, regulated US derivatives venue serving institutional and professional crypto derivatives traders.
- NinjaTrader: Retail-focused futures trading platform; acquired by Kraken alongside Small Exchange as part of a unified US derivatives platform strategy. Strong product and customer overlap in retail futures trading infrastructure.
- Bitnomial: CFTC-registered DCM and clearing organization offering US-regulated crypto derivatives. Directly comparable as a small, regulated derivatives exchange competing for the same retail and institutional crypto-derivatives flow.
- Coinbase Derivatives: CFTC-regulated futures exchange focused on smaller-sized crypto derivatives contracts. Closely comparable in product philosophy (smaller, accessible contracts on a CFTC-registered venue) and competitive overlap post-Kraken acquisition.
Emerging players
- Robinhood: Retail-first broker expanding into futures via Robinhood Derivatives; comparable target customer (modern retail traders) and platform-led distribution model for accessible derivatives products.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat3 records
Key risks6 records
Key highlights6 records
Customer concentration
The Small Exchange social profiles
Digital presenceThe Small Exchange compliance and trust
Trust signalCompliance1 record
The Small Exchange financial estimates
Financial estimateRevenue estimate
Valuation estimate
The Small Exchange leadership team
Management profileNumber of profiles
Profiles4 records
The Small Exchange funding detail
Funding detailFunding overview
Funding rounds4 records
Investors6 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
The Small Exchange M&A and investment
M&A and investmentM&A
Investments1 record
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about The Small Exchange
What does The Small Exchange do?
The Small Exchange operates a CFTC-registered Designated Contract Market (DCM) that offers small-sized futures and options products designed to make derivatives trading more accessible to retail traders. The platform standardizes contract tick sizes and expiration dates across all products to simplify trading, and serves both individual traders directly and institutional participants (clearing firms, corporate members, liquidity providers) as partners and market makers.
Is The Small Exchange a public or private company?
The Small Exchange is a private company. It is classified as corporate owned and is currently acquired.
When was The Small Exchange founded?
The Small Exchange was founded in 2017. It employs 11 to 50 people.
Where is The Small Exchange based?
The Small Exchange is headquartered in Chicago, United States, in the North America region.
How does The Small Exchange make money?
One revenue line is on record: derivatives Trading Fees.
Who are The Small Exchange's main competitors?
Broad incumbents on record are CME Group, Cboe Global Markets, Interactive Brokers and Binance.US. Direct peers are tastytrade (IG Group), LedgerX (MIAX Futures), NinjaTrader, Bitnomial and Coinbase Derivatives. Robinhood is listed as an emerging player.
Does The Small Exchange have an API?
No public API is recorded for The Small Exchange.
What industry is The Small Exchange in?
The Small Exchange's product category is Futures and Options Exchange Platform. Its primary akta.pro industry code is FSAFAFAA, Listed Derivatives CCPs (Futures & Options). Its NAICS code is 523210 and its SIC code is 6200.