Overview

• Kraken paid $32.5 million in cash and $67.5 million in Payward stock to acquire the Chicago-based Designated Contract Market from IG Group.
• Control of the CFTC-licensed venue allows Kraken to list U.S. exchange-traded crypto futures and options and to integrate clearing, risk, and matching in one regulated environment.
• IG Group reports a post-tax gain of £73.3 million, an increase of £22.7 million in regulatory capital resources, and an ongoing distribution partnership with Kraken.
• The deal advances Kraken’s regulated derivatives buildout alongside prior acquisitions like NinjaTrader and Crypto Facilities and complements its UK and EU venues.
• Small Exchange’s small-sized futures contracts were designed for retail access, broadening a pathway for both retail and institutional clients to U.S. crypto derivatives.