Nadex (Northern American Derivatives Exchange), formerly known as HedgeStreet, is a US-based retail-focused online

binary option A binary option is a financial exotic option in which the payoff is either some fixed monetary amount or nothing at all.Breeden, D. T., & Litzenberger, R. H. (1978). "Prices of state-contingent claims implicit in option prices". ''Journal of Bus ...

s exchange. It offers retail trading of binary options and

spread Spread may refer to: Places * Spread, West Virginia Arts, entertainment, and media * ''Spread'' (film), a 2009 film. * '' $pread'', a quarterly magazine by and for sex workers * "Spread", a song by OutKast from their 2003 album '' Speakerboxx ...

s on the most heavily traded

forex The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspe ...

commodities In economics, a commodity is an economic good, usually a resource, that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them. The price of a co ...

and

stock indices In finance, a stock index, or stock market index, is an index that measures a stock market, or a subset of the stock market, that helps investors compare current stock price levels with past prices to calculate market performance. Two of the pri ...

markets.

History

Nadex originally was known as "HedgeStreet" and was based in

San Mateo, California San Mateo ( ; ) is a city in San Mateo County, California, on the San Francisco Peninsula. About 20 miles (32 km) south of San Francisco, the city borders Burlingame, California, Burlingame to the north, Hillsborough, California, Hillsboro ...

. 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. 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^TM (Nadex). HedgeStreet was considered a pioneer in event futures, and the

derivatives exchange A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts defined by the exchange. Futures contracts are derivatives contracts to buy or sell specific quantities of a commodity or f ...

is regulated in the US by the

Commodity Futures Trading Commission The Commodity Futures Trading Commission (CFTC) is an independent agency of the US government created in 1974 that regulates the U.S. derivatives markets, which includes futures, swaps, and certain kinds of options. The Commodity Exchange Ac ...

(CFTC). The company operates the HedgeStreet Exchange, which launched in October 2004 and provides traders with a place where they can hedge against or

speculate In finance, speculation is the purchase of an asset (a commodity, goods, or real estate) with the hope that it will become more valuable shortly. (It can also refer to short sales in which the speculator hopes for a decline in value.) Many ...

on economic events and price movements. 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. 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. In 2007, UK-based IG Group announced intent to acquire HedgeStreet 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 Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, bo ...

-based

Crypto.com Crypto.com is a cryptocurrency exchange company based in Singapore. As of May 2022, the company reportedly had 50 million customers and 4,000 employees. The exchange issues a token, Cronos. History The company was initially founded in Hong Ko ...

announced their intent to acquire Nadex and the Small Exchange from IG Group. In March 2022, Crypto.com completed the purchase.

References

{{reflist Companies based in Chicago Financial services companies established in 2004 Economics websites Prediction markets Futures exchanges

History

See also

References