The Commodity Futures Trading Commission's Division of Market Oversight issued a time-limited no-action letter to Kraken Derivatives Exchange Inc., formerly Small Exchange Inc., extending relief that allows the designated contract market to list products for trading without first reinstating its designation under Commission Regulation 38.3(b), even though it would otherwise be treated as a dormant designated contract market under Regulation 40.1. The extension runs until the earlier of August 10, 2027, or the close of business on the date a trade is executed on or pursuant to KDE's rules. The relief extends a prior no-action position that had been due to expire on October 10, 2026. KDE said Kraken is reevaluating KDE's role after acquiring another designated contract market and is considering strategic partnerships and sales opportunities that could support renewed trading. The extension keeps in place the earlier conditions. During the covered period, KDE may list only products individually submitted under Part 40, must give the division at least two business days' prior written notice of each initial product listing, and must continue engaging with staff on any material changes to its business, operations, systems, policies or programs. Before the first product listing during the covered period, KDE must provide at least 10 business days' written notice and represent that, aside from the dormancy-related relief, it remains in compliance with applicable Commodity Exchange Act and designated contract market requirements, including clearing-related and self-regulatory obligations. If trading starts during the covered period, that activity resets the 365-day inactivity period used for determining dormant status. If trading has not started by the time the relief expires, KDE will need to reinstate its designation under Regulation 38.3(b) before listing products for trading.

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