 | |
| Company type | Private |
|---|---|
| Industry | Finance |
| Founded | 2004[1] |
| Founder | John Nafeh[2] |
| Headquarters | , United States |
Area served | United States |
Key people | Travis McGhee, CEO |
| Products | Binary options, Knock-outs, and Call Spreads |
| Services | Derivatives exchange |
| Owner | Crypto.com |
Number of employees | 50[2] |
| Website | www |
Nadex (Northern American Derivatives Exchange), formerly known asHedgeStreet, is a US-based retail-focused onlinebinary options exchange. It offers retail trading of binary options andspreads on the most heavily tradedforex,commodities andstock indices markets.
Nadex originally was known as "HedgeStreet" and was based inSan Mateo, California. The Exchange was launched in 2004 offering an electronic marketplace that offered trading infinancial derivatives to retail investors. HedgeStreet shut down its business in late 2007.[3] Shortly thereafter, UK-basedIG 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 thederivatives exchange is regulated in the US by theCommodity Futures Trading Commission (CFTC).[2] The company operates the HedgeStreet Exchange, which launched in October 2004 and providestraders with a place where they canhedge against orspeculate 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 inderivatives.[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-basedIG 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-basedCrypto.com announced their intent to acquire Nadex and the Small Exchange from IG Group.[7] In March 2022, Crypto.com completed the purchase.
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.
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.
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.
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.