Nadex
Company typePrivate
IndustryFinance
Founded2004[1]
FounderJohn Nafeh[2]
Headquarters
Chicago, Illinois
,
United States
Area served
United States
Key people
Travis McGhee, CEO
ProductsBinary options, Knock-outs, and Call Spreads
ServicesDerivatives exchange
OwnerCrypto.com
Number of employees
50[2]
Websitewww.nadex.com

Nadex (Northern American Derivatives Exchange), formerly known as HedgeStreet, is a US-based retail-focused online binary options exchange. It offers retail trading of binary options and spreads on the most heavily traded forex, commodities and stock indices markets.

History

Nadex originally was known as "HedgeStreet" and was based in San Mateo, California. The Exchange was launched in 2004 offering an electronic marketplace that offered trading in financial derivatives to retail investors. HedgeStreet shut down its business in late 2007.[3] Shortly thereafter, UK-based IG Group Holdings plc. agreed to purchase HedgeStreet, Inc. for $6 million and began restructuring the exchange, its technology, and its products. In 2009, HedgeStreet was renamed as the North American Derivatives Exchange (Nadex).

HedgeStreet was considered a pioneer in event futures, and the derivatives exchange is regulated in the US by the Commodity Futures Trading Commission (CFTC).[2] The company operates the HedgeStreet Exchange, which launched in October 2004 and provides traders with a place where they can hedge against or speculate on economic events and price movements.[1] The reasoning behind the creation of HedgeStreet was that with the rise of individual private investment in stocks, there might be a similar appetite for individuals to invest in derivatives.[4] This focus on small investors created sufficient confusion that John Nafeh, founder of HedgeStreet, created the term "hedgelet" to help explain the company's business model.[2]

In 2007, UK-based IG Group announced intent to acquire HedgeStreet[5][6] and later in the year completed the purchase of the company. After the purchase, Nadex began to offer binary options similar to those already available on IG's platform.

In December 2021, Singapore-based Crypto.com announced their intent to acquire Nadex and the Small Exchange from IG Group.[7] In March 2022, Crypto.com completed the purchase.

See also

References

  1. ^ a b Steven Smith (2004-11-25). "Hedging for Small Investors". TSCOptions column. TheStreet.com. Archived from the original on 2007-10-18. Retrieved 2007-12-26. The site, which launched in early October .... operates as both an exchange and clearinghouse, is a licensed operator, in this case by the Commodity Futures Trading Commission.
  2. ^ a b c d Laura Counts (2006-05-26). "HedgeStreet has opened up derivatives trade to Main Street". Print Edition. Silicon Valley / San Jose Business Journal. Retrieved 2007-12-26. I'd spend the first half of every conversation saying 'no,'" said Mr. Nafeh, chairman of the San Mateo company. "I had to come up with the term 'hedgelet,' so I could explain what it was, instead of what it wasn't.
  3. ^ "Nadex binary options". Binary options strategy. Retrieved 2020-07-07.
  4. ^ Daniel Nasaw; Ian McDonald (2004-10-22). "Firm Offers Hedging on a Small Scale" (Preview). WSJ.com. The Wall Street Journal. Retrieved 2007-12-26. Now a new online market wants to bring derivatives to the masses, albeit in small doses and not in the speculative form that critics contend can pose financial ruin.
  5. ^ Regulatory News Service (2007-11-19). "IG Group Hldgs plc - Acquisition". Hemscott.com. Ipreo. Retrieved 2007-12-26. IG Group Holdings plc ('IG' or 'the Group') agreed on Friday 16th November to purchase the entire issued share capital of HedgeStreet Inc ('HedgeStreet') for $6.0m, approximately £2.9m.
  6. ^ Regulatory News Service (2007-12-07). "IG Group Hldgs plc - Acquisition Update". Hemscott.com. Ipreo. Retrieved 2007-12-26.
  7. ^ "Crypto.com Agrees to Acquire Nadex and the Small Exchange from IG Group". Crypto.com. 2021-12-01. Retrieved 2021-12-01.
Categories