The Small Exchange, a new futures exchange offering smaller, simpler products aimed toward retail customers, today announced securing $4 million in investment from Interactive Brokers (Nasdaq: IBKR) an automated global electronic broker, and Phillip Capital Group, a global financial services firm. As strategic partners, both firms will be key participants on the Small Exchange.
The investments by Interactive Brokers and Phillip Capital add two world class brokerage firms that will provide access for their customers to the Small Exchange product offering. The Small Exchange, focused on becoming the leading customer centric futures exchange, offers smaller, simpler products designed to bridge the futures product gap for investors and participants of all sizes. The investment will enable the Small Exchange to invest in its operations and expand its offering including additional futures products and options to individual traders and small trading firms seeking to connect to these markets. The Small Exchange’s focus continues to be on the retail trader and addressing the fee and connectivity barriers they face so they have better access.
“As we launch our exchange, we are ecstatic to have Interactive Brokers and Phillip Capital as participants and strategic investors. The worldwide customer reach of these two firms combined with their knowledge of the brokerage space makes them a great fit for the Small Exchange,” said Don Roberts, the Small Exchange President and CEO. “Our product offering is tailored to the wide customer range of both firms. Having them as part of our already solid base of participants provides momentum as we build our liquidity and get ready for the next steps in our growth to offer expanded hours and option trading on our products.”
“Interactive Brokers serves clients in over 200 countries and territories, connecting them to 135 markets in 33 countries. We pride ourselves on providing a broad range of products to our clients,” said Steve Sanders, EVP of marketing and product development at Interactive Brokers. “Adding access to The Small Exchange will provide a new product offering for our clients that want to trade smaller, simpler futures contracts.”
“One of Phillip Capital’s main core values is to serve the retail community,” said Lynette Lim, Co-CEO and Director. “Through our investment and participation in the Small Exchange, we believe we can provide the retail user with products that are simple to understand and provide a level playing field for all. “
Since its inception, the Small Exchange has previously raised $20 million from an impressive list of renowned industry innovators including co-founders tastytrade, Peak6, then Citadel Securities and Jump Capital.
Added Roberts, “We have worked tirelessly for 18 months to realize this new exchange. It would not have been possible without the collaboration of partners like these firms, market participants and regulators. Investors have embraced us fully and we look forward to moving the industry forward.”
As of June 1, 2020, the Small Exchange has 18 partners including some of the world’s largest trading firms and market-makers. It has launched 3 products including an Equity Index, Dollar Index, and Metals Index. To learn more about the Small Exchange’s offering, visit www.thesmallexchange.com.
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, capital efficient, simple to use, and easy to understand for all participants. The company will facilitate 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.
About Interactive Brokers Group, Inc.: Interactive Brokers Group provides automated trade execution and custody of securities, commodities and foreign exchange around the clock on over 135 markets in numerous countries and currencies, from a single IBKR Integrated Investment Account to clients worldwide. The platform services individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments.
About Phillip Capital, Inc: Serving more than 1 million clients worldwide, the Phillip Capital Group of companies spans 16 countries and offers a comprehensive suite of financial services including futures, foreign exchange, equities, fixed income, bonds, unit trusts, real estate, and insurance. With shareholder’s funds greater than $1.5 billion and global assets under custody/management greater than $35 billion, the group has been profitable each year since its founding in 1975. The group is also privately held with no long-term debt. The Phillip Capital Group employs more than 5,000 people worldwide, with offices in Singapore, Hong Kong, China, India, Japan, Malaysia, Thailand, Indonesia, Cambodia, Sri Lanka, United Kingdom, France, Australia, Turkey and Dubai. Formed in 2010 as a Futures Commission Merchant (FCM), Phillip Capital Inc. has exchange memberships on the Small Exchange, CME, CBOT, COMEX, NYMEX, ICE Futures US, CFE, NFX, ICE Futures EU, and DME. In addition, Phillip Capital Inc. provides access to all the major Asian exchanges and other global exchanges through the network of Phillip Capital Group.
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