Binary options and forex trading business IG Group is to sell its North American Derivatives Exchange (Nadex) business and its 39% stake in Small Exchange to Foris DAX Markets, part of the group of companies trading as Crypto.com.
IG Group would receive $216.0m (£162.0m/€190.8m) in cash should the deal go ahead.
Nadex is a US derivatives exchange for binary options, call spreads and knock-outs, offering users access to global financial markets, forex pairs, commodities and economic events. The exchange is regulated by the Commodity Futures Trading Commission (CFTC).
Small Exchange, which is also approved by the CTFC, is a US-facing futures exchange that offers small, standardised futures products on a range of underlying products to simplify access to the futures markets.
IG Group said the proposed sale does not materially impact full-year adjusted operating profit expectations, nor medium-term revenue growth guidance.
Subject to the satisfaction of customary conditions, including regulatory review, the deal is expected to complete during the first half of 2022.
“We’re really excited by this deal, as it delivers a significant return on the previous investments made in Nadex and Small Exchange and enables additional investment across all our businesses,” IG Group chief executive June Felix said.
“This deal also allows us to further sharpen our focus on integrating and expanding the US options and futures business through our tastytrade and tastyworks franchises, both in the US and internationally, where we see significant room for growth.”
The announcement comes after IG Group earlier this month completed a debt refinancing program and implemented a long-term funding structure, increasing its total credit facilities to £600m.