IG Group's Strategic Move to Reclaim the Small Exchange: Reshaping Retail Futures Trading

IG Group, the London-based fintech giant established in 1974, has officially acquired the Small Exchange, marking a significant consolidation in the retail futures trading space. This reacquisition represents more than a simple business transaction—it signals a deliberate push to reshape how retail investors access futures markets through innovative exchange infrastructure.

The Small Exchange’s Market Position

The Small Exchange, launched in 2019 in Chicago as a registered Designated Contract Market (DCM) with the Commodity Futures Trading Commission (CFTC), was designed with a specific mission: democratizing futures trading for retail participants. Unlike traditional exchanges that cater primarily to institutional players, the Small Exchange focuses on creating products that are more capital-efficient, easier to understand, and accessible to traders of all sizes. After being acquired by a certain crypto-focused parent company in March 2022, the exchange has now returned to IG Group’s portfolio—the company that originally held a stake in its founding.

Technology and Infrastructure at the Core

What makes this acquisition particularly noteworthy is the emphasis on the Small Exchange’s proprietary technology stack. The platform boasts a world-class matching engine, sophisticated risk-monitoring systems, and advanced trading infrastructure that rivals much larger exchanges. These technical capabilities are now being integrated into IG Group’s broader ecosystem, which already includes tastytrade, tastylive, and other trading platforms serving the retail market.

Strategic Vision for Retail Futures Markets

Tom Sosnoff, Founder of tastylive, articulated the long-term vision behind this move: “The future of market structure in the US depends heavily on product innovation at the exchange level, and we’re confident in building an exchange that will scale and become a market leader over the next decade.” This statement underscores a critical insight—that exchange-level innovation, not just broker services, will determine winners in the next decade of retail trading.

Expanding IG Group’s Footprint

For IG Group, which already provides access to approximately 19,000 financial markets across multiple continents, acquiring the Small Exchange enhances its ability to serve U.S. retail investors. The company operates through various brands including IG, tastytrade, tastylive, tastycrypto, and IG Prime, each targeting different segments of the retail trading demographic. The Small Exchange acquisition allows IG Group to offer futures products specifically designed for retail users who may have previously found traditional futures markets too complex or capital-intensive.

Bridging the Product Gap

The Small Exchange’s core mission—bridging the product gap for investors of all sizes—aligns perfectly with IG Group’s philosophy of democratizing financial markets. By offering micro futures contracts and simplified product structures, the exchange serves market-makers, introducing brokers, proprietary trading firms, and hedge funds, while maintaining a primary focus on individual retail participants. This customer-centric approach represents a distinct competitive positioning in an industry traditionally dominated by large, institutional-focused venues.

This acquisition reflects a broader industry trend: successful trading platforms are no longer just brokers competing on commission or spreads, but exchange operators innovating at the infrastructure level to capture the structural advantages that come with owning market-making venues.