Nadex

Short description: US-based derivatives exchange

Nadex

Type| Private
Industry| Finance
Founded| 2004[1]
Founder| John Nafeh[2]
Headquarters|

Chicago, Illinois

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.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

* Prediction market

## References

1. ↑ 1.0 1.1 Steven Smith (2004-11-25). "Hedging for Small Investors". TSCOptions column (TheStreet.com). http://www.thestreet.com/_tscs/options/stevensmith/10196132.html. 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. ↑ 2.0 2.1 2.2 2.3 Laura Counts (2006-05-26). "HedgeStreet has opened up derivatives trade to Main Street". Print Edition (Silicon Valley / San Jose Business Journal). http://sanjose.bizjournals.com/sanjose/stories/2006/05/29/story4.html. 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" (in en-US). https://www.binaryoptionstrategy.eu/nadex-options-review/.
4. ↑ Daniel Nasaw; Ian McDonald (2004-10-22). "Firm Offers Hedging on a Small Scale" (Preview). WSJ.com (The Wall Street Journal). https://www.wsj.com/articles/SB109838600867752205. 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. ↑ "IG Group Hldgs plc - Acquisition". Hemscott.com (Ipreo). 2007-11-19. http://www.hemscott.com/companies/company-news-item.do?companyId=4985&newsId=53878217548693. 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. ↑ "IG Group Hldgs plc - Acquisition Update". Hemscott.com (Ipreo). 2007-12-07. http://www.hemscott.com/news/rna/item.do?newsId=56416542973120. Retrieved 2007-12-26.
7. ↑ "Crypto.com Agrees to Acquire Nadex and the Small Exchange from IG Group". 2021-12-01. https://crypto.com/company-news/crypto-com-agrees-to-acquire-nadex-and-the-small-exchange-from-ig-group.

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