Chicago Board Options Exchange (CBOE) announced it has taken an equity stake in HedgeStreet, the upstart online binary options and futures exchange, to jointly develop and market new products.
The partnership put CBOE in the middle of a fast growing market for alternative and innovative products.
The deal will pair the traditional options exchange with HedgeStreet, which opened in 2004 and offers binary options and futures on a range of underlying events from currencies and energy to economic figures and housing prices.
HedgeStreet, based in San Mateo, California, is regulated by Commodities Futures Trading Commission and reported trading almost a million...