Kraken acquires Small Exchange… Builds U.S. derivatives trading platform

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Summary

Kraken announced it acquired Small Exchange for $100 million to enter the U.S. derivatives market.
Through this acquisition, Kraken said it plans to build a U.S. derivatives trading platform.
Kraken said it plans to integrate clearing, risk management, and matching systems under CFTC oversight as a strategy to expand its position in the U.S. derivatives market.

U.S. cryptocurrency exchange Kraken has acquired futures exchange operator Small Exchange for $100 million to enter the U.S. derivatives market.

On the 16th (local time), The Block reported that Kraken announced it had acquired Small Exchange, a Designated Contract Market approved by the U.S. Commodity Futures Trading Commission (CFTC), from the UK-based IG Group. Kraken plans to build a full U.S. derivatives trading platform based on this acquisition.

Arjun Sethi, Kraken's co-CEO, said, "This acquisition allows us to integrate spot, futures, and margin trading within a single regulated liquidity system," adding, "Under CFTC oversight, we will be able to integrate clearing, risk management, and matching systems to the level of major global exchanges."

This acquisition is part of Kraken's strategy to expand its presence in the U.S. derivatives market. Earlier this year, Kraken also acquired U.S. futures trading platform NinjaTrader.