December 1, 2021 — Crypto.com, the world’s fastest-growing cryptocurrency and financial services platform, today announced that it has executed a sale and purchase agreement to acquire the North American Derivatives Exchange® (Nadex®) — a leading U.S.-based retail-focused, regulated online exchange and clearing house offering derivative products on some of the world’s most heavily traded markets — and the Small Exchange — a revolutionary futures exchange offering smaller, simpler products also aimed toward retail customers.
The proposed acquisition of Nadex and the Small Exchange will enable Crypto.com to provide its U.S.-based customers with the opportunity to trade certain derivatives and futures products.
Our goal as a platform is to offer our customers a trusted, secure, and regulated platform with world-class tools to achieve financial independence. This proposed acquisition builds on that promise and will give our customers access to an entirely new set of financial tools to complement our current offering.
Kris Marszalek, Co-founder and CEO of Crypto.com
Nadex is part of the North American unit of IG Group (LON: IGG), a FTSE 250 global financial services firm with a market cap of approximately $4.3 billion USD. Based in Chicago, Ill., Nadex is the premier U.S. exchange for binary options, call spreads, and Touch Bracket™ (“knock-out”) contracts, offering secure and innovative ways to participate in the markets. Nadex is registered with, and subject to regulation by the Commodity Futures Trading Commission (CFTC). Member funds are held in segregated accounts in major U.S. banks.
The Small Exchange is a retail trader-centric futures exchange, providing futures products that are smaller, more capital efficient, simple to use, and easy to understand. The Chicago-based company facilitates the trading of exchange-created proprietary products for a range of market participants including market-makers/liquidity providers, Introducing Brokers (IBs), Futures Commission Merchants (FCMs), proprietary trading firms, and hedge funds. Travis McGhee and Donald Roberts will continue in their roles as CEOs of Nadex and the Small Exchange respectively, post close.
This is a fantastic deal that is beneficial to all parties. Nadex and the Small Exchange are strong innovative businesses, and we are pleased that Crypto.com has recognized their potential. This will be an exciting time for clients and all those involved in the businesses.
June Felix, Global CEO, IG Group
Crypto.com expects to complete the acquisition of Nadex and the Small Exchange in the first half of 2022, pending regulatory review. Both companies will fold under the Crypto.com brand.
About Crypto.com
Founded in 2016, Crypto.com today serves over 10 million customers with the world’s fastest-growing cryptocurrency and financial services platform.
Crypto.com has focused on building a regulated business in every market where the company operates. Accordingly, Crypto.com is built on a solid foundation of security, privacy and compliance and is the first cryptocurrency company in the world to have SOC 2 Type 1 compliance, ISO/IEC 27701:2019, CCSS Level 3, ISO27001:2013 and PCI:DSS 3.2.1, Level 1 compliance, and independently assessed at Tier 4, the highest level for both NIST Cybersecurity and Privacy Frameworks. Crypto.com also holds the industry’s largest insurance policy of $750M.
Crypto.com is a global company with over 3,000 people in offices across the Americas, Europe and Asia. Crypto.com is accelerating the world’s transition to cryptocurrency. Find out more at crypto.com/us.
About Nadex
Nadex, your home base for short-term options trading. The North American Derivatives Exchange® (Nadex®) is the premier US exchange for binary options, call spreads, and Touch Bracket™ (“knock-out”) contracts, offering secure and innovative ways to participate in the markets. They are subject to regulation by the Commodity Futures Trading Commission (CFTC), and member funds are held in segregated accounts in major US banks.
As a Nadex member, you can trade multiple markets and access an ongoing series of short-term trading opportunities. Over 10,000 intraday, daily, and weekly contracts are traded five days a week on desktop and mobile platforms. Nadex is a regulated financial exchange, meaning we match buyers and sellers, and do not directly take positions in any markets.
Based in Chicago, Nadex is part of the North American unit of IG Group (LON: IGG), a FTSE 250 global financial services firm.
To learn more about Nadex, please visit their site.
About Small Exchange:
Based in Chicago, the Small Exchange – backed by award-winning industry innovators and powered by a proprietary trade matching engine – is a registered Designated Contract Market (DCM) with the Commodity Futures Trading Commission (CFTC). The Small Exchange’s mission is to become the world’s largest customer-centric futures exchange, bringing products that bridge the product gap for investors of all sizes by providing futures products that are smaller, more capital efficient, simple to use, and easy to understand for all participants. The company facilitates the trading of exchange-created proprietary products for all types of market participants including, but not limited to market-makers/liquidity providers, Introducing Brokers (IBs), Futures Commission Merchants (FCMs), proprietary trading firms and hedge funds, all with a primary focus on the public retail customer. Please visit www.thesmallexchange.com for more information.
