The Commodity Futures Trading Commission (CFTC) has issued an Order of Designation to Small Exchange, Inc., located in Chicago, Ill., granting it status as a designated contract market (DCM), effective today. Small Exchange is incorporated under Delaware state law.
The Small Exchange seeks to make the futures markets more accessible to more people. The exchange claims that futures are more capital-efficient than stocks but complexity mitigates interest and participation from a wider audience. The Small Exchange aims to “offer the best of both worlds with products that are small, standard, and simple.”
The CFTC issued the order under Section 5 of the Commodity Exchange Act (CEA) and CFTC regulation 38.3(a). After review of its application and associated exhibits, the CFTC determined that Small Exchange demonstrated its ability to comply with the requirements of the CEA and the CFTC’s regulations applicable to DCMs.
The order requires, among other terms and conditions, that Small Exchange comply with all provisions of the CEA and all requirements in the CFTC’s regulations, as may be amended or adopted, that are applicable to DCMs. Small Exchange also must comply with all representations and submissions made by it in support of its application for designation as a contract market.
Small Exchange Designated as Contract Market CFTC March 2020