The CFTC approved the application for designation as a contract market of a new futures exchange.
According to the Order of Designation, the CFTC determined that Small Exchange, Inc. ("Small Exchange"), a new futures exchange offering contracts that are smaller in dollar value and aimed at individual traders, demonstrated the necessary compliance with the Commodity Exchange Act Section 5 ("Designation of Boards of Trade as Contract Markets") and CFTC Rule 38.3(a) ("Procedures for Designation").
According to a press release, the Small Exchange "aims to bridge the product gap between equities and futures for investors of all sizes . . . [by] launching a product suite that pairs the capital efficiency of futures with the simplicity of stocks. The initial product offering consists of cash-settled contracts based on proprietary indices in equities, interest rates, metals, energy, and foreign exchange." It will compete with similar products offered by incumbent exchanges, such as the CME's Micro E-mini futures contracts linked to the S&P 500.
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