The Small Exchange
| The Small Exchange | |
| |
| Founded | 2019 |
|---|---|
| Headquarters | Chicago |
| Key People | Donnie Roberts, president and CEO |
| Products | Retail-focused futures exchange |
| Website | https://www.thesmallexchange.com/ |
The Small Exchange, a new futures market aimed at retail customers, opened for trading on June 1, 2020, with access through CQG's platform.[1] The exchange will initially offer three products: an equity index, dollar index and metals index. Donnie Roberts, president and CEO of the Small Exchange, said the company plans to introduce additional products in successive expiration cycles.[2] The Small Exchange also confirmed it had the support of a new partner, Interactive Brokers. [3]
The company was co-founded in January 2019 by Tastytrade founder Tom Sosnoff and Peak6 founders Matt Hulsizer and Jenny Just.[4]
The CFTC approved its application become a U.S. futures exchange on March 10, 2020. [5]
The exchange built its own infrastructure, from the matching engine to the risk management system. Its clearing will be done by OCC.[6] The platform will start with futures and add options later.[7]
Background[edit]
The Small Exchange was formed to become the world's largest "customer-centric" futures exchange, aiming to offer contracts designed for retail traders. It offered an initial one-time subscription to the exchange, a 50 percent discount on exchange fees and reduced market data fees. Up to 25,000 subscriptions were offered at $100 each.
The goal of the exchange was to make futures trading easy and attainable for customers.[8]
In May 2019, the firm announced it had raised $10 million in new capital, $5 million each from Citadel Securities and Jump Capital, a division of Jump Trading.[9] The following year, in May 2020, the exchange said it also landed support from Interactive Brokers and numerous other industry partners.[10]
In September 2019, the exchange announced that OCC would serve as its clearing house.[11]
Products and Services[edit]
The exchange launched offering FX, equity indexes and metals:[12] Small U.S. Dollar, priced directly to the U.S. dollar to eliminate the need for foreign exchange conversions; Small Stocks 75, which tracks data points across five major stock sectors; and Small Precious Metals, a blend of the most popular tradeable metals.
Contracts are priced in small, retail-contract sizes. Contracts will be cash-settled on the third Thursday of the month.
On December 7, 2020, the exchange announced it launched Small Treasury Yield (S10Y) futures, which offers customers the ability to trade Treasury futures according to their yield, rather than price. The yield for the contract is based on real-time U.S. Treasury data provided by the fintech company MarketAxess. [13]
On June 21, 2021 the Small Exchange launched the first Cannabis Equity Index Future (S420).[14] [15]
And on September 23, 2021 the exchange said it planned to notice file with the Commodity Futures Trading Commission to list a stock index futures contract based on an index of 17 cryptocurrency-related publicly traded companies.[16]
Key People[edit]
- Donnie Roberts, president and CEO
- Tom Sosnoff, co-founder
References[edit]
- ↑ The Small Exchange Announces Access to New Markets Via CQG. PR Newswire.
- ↑ The Small Exchange Opens, Signs New Partners, Introduces New Product Suite. Press Release.
- ↑ Futures Exchange Wins New Partner for June 1 launch. Crain's Chicago Business.
- ↑ The Small Exchange®, a New Customer-Focused Futures Exchange for the Everyday Investor to Launch. Press Release.
- ↑ CFTC Approves New Futures Exchange Aimed at Individual Traders. The Wall Street Journal.
- ↑ A new exchange . . . with new products . . . for traders of all sizes. Small Exchange.
- ↑ Tastytrade, Peak6 invest $10 million in new exchange. Crain's Chicago Business.
- ↑ The Small Exchange: Building a new ecosystem for the little fish. John Lothian News.
- ↑ The Small Exchange Raises $10 Million from Citadel Securities and Jump Capital in New Strategic Financing Round. Press Release.
- ↑ The Small Exchange Opens, Signs New Partners, Introduces New Product Suite. Press Release.
- ↑ The Small Exchange Secures OCC Clearing and Settlement Services. Press Release.
- ↑ The Small Exchange Opens, Signs New Partners, Introduces New Product Suite. Press Release.
- ↑ The Small Exchange Launches New 10-Year Treasury Yield Future. Businesswire.
- ↑ The Small Exchange Continues to Innovate With First Cannabis Equity Index Future Product (S420) for Small Investors. The Small Exchange via Businesswire.
- ↑ Small Exchange Scores a First With Cannabis Futures Contract. John Lothian News.
- ↑ Small Exchange Says It Plans to List Crypto Stock Index Futures Contract. John Lothian News.