The Small Exchange is a technology company.
The Small Exchange has raised $10.0M across 1 funding round.
The Small Exchange has raised $10.0M in total across 1 funding round.
The Small Exchange is a Chicago-based fintech company founded in 2017 that operates a Designated Contract Market (DCM) registered with the CFTC, specializing in small, standardized, and simple futures products for retail traders and investors of all sizes.[1][5][6] It bridges the gap in traditional futures markets by offering capital-efficient contracts in stocks, bonds, currencies, commodities, and indices—like Small US Crude Oil and Small S420 Cannabis Equity Index—designed for easier access, with uniform tick sizes of 0.01 ($1 value) and monthly expirations on the third Friday.[1][4][5][6] The platform serves retail customers primarily, alongside market makers, brokers, and institutions, solving the complexity and large contract sizes that deter modern traders from futures.[1][2][5] Acquired by IG Group in April 2023 and later by Crypto.com (along with Nadex) in a $216M cash deal, it has raised $34.09M total and continues innovating with options on futures, such as for precious metals.[1][3]
The Small Exchange was founded in 2017 in Chicago by industry veterans, including Chairman and co-founder Tom Sosnoff—known for building thinkorswim, an equity options platform sold to TD Ameritrade for $606M in 2009—and partners like Matt Roberts, former COO of thinkorswim, driven by a mission to democratize futures for self-directed investors.[1][6] The idea emerged from Sosnoff's decades-long push to connect retail traders with efficient capital markets, addressing futures' barriers like oversized contracts and complexity amid rising retail interest.[6] Key early traction came with its 2020 launch of proprietary "Smalls" products, powered by a custom-built matching engine and risk system, coinciding with meme stock mania that boosted retail futures participation; it quickly expanded offerings across asset classes.[1][6] Reacquired by Sosnoff's tastylive in a move emphasizing product innovation, it was sold to IG Group in 2023 before Crypto.com's purchase, marking its evolution from startup to strategic asset in derivatives.[1][3]
The Small Exchange rides the retail trading democratization wave, amplified by zero-commission brokers, meme stocks, and crypto crossovers, timing its 2020 launch perfectly as retail futures volumes surged.[1][6] Favorable market forces include CFTC deregulation for DCMs, demand for capital-efficient alternatives to stocks amid volatility, and fintech convergence with crypto (evident in Crypto.com's acquisition).[1][3][5] It influences the ecosystem by lowering futures entry barriers—drawing in non-traditional participants like advisors and prop traders—while fostering innovation in product design, potentially reshaping U.S. exchange competition toward retail scale.[1][6]
With Crypto.com's backing post-2023 acquisition, The Small Exchange is poised to accelerate product rollouts like cannabis indices and precious metals options, targeting advisory integration and deeper liquidity.[1][3][6] Trends like AI-driven trading, embedded finance, and crypto-futures hybrids will shape its path, amplifying retail adoption amid volatile macro conditions.[3][5] Its influence could evolve from niche innovator to market leader, scaling "Smalls" to challenge incumbents and redefine accessible derivatives—ultimately fulfilling its goal of making futures as approachable as stocks for the next decade of traders.[1][6]
The Small Exchange has raised $10.0M in total across 1 funding round.
The Small Exchange's investors include Jump Capital.
The Small Exchange has raised $10.0M across 1 funding round. Most recently, it raised $10.0M Seed in May 2019.
| Date | Round | Lead Investors | Other Investors |
|---|---|---|---|
| May 1, 2019 | $10.0M Seed | Jump Capital |