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Chicago Board Options Exchange (CBOE) has increased its investment in HedgeStreet as Susquehanna International (SIG) and DRW Trading (DRW) also took equity stakes in the company and launched market-making services on the exchange as well.
CBOE took a sizeable initial stake in HedgeStreet in February 2006. Terms of the equity investments were not disclosed.
Later that year, CBOE acquired a further 17.6% stake for $2m and said it would partner it to offer binary contracts. Terms of the latest buys were not disclosed but, according to reports, DRW and Susquehanna have invested a combined $10m in the California-based business.
The move marks an ongoing strategy by HedgeStreet to develop a more institutional component to the exchange, which was founded in 2004 as a retail trading engine that offers a range of binary options. The exchange offers contracts on currencies, commodities, real estate and hurricanes.
HedgeStreet chairman and CEO Stephen Race said the exchange plans to offer a new institutional trading platform later this year with similar contracts that carry larger denominations. Susquehanna is a major market maker in options markets and DRW is one of the largest market markers in CME's Eurodollars as well as CME economic auctions, housing options and weather derivatives.
"In a democracy, voters get the government they deserve. The performance of the US Congress in recent years suggests that Americans have been poor choosers."
Former CFTC chair Philip McBride Johnson on the CFTC's funding crisis.