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SUSQUEHANNA AND DRW TO MAKE MARKETS ON HEDGESTREET®
SIG, DRW JOIN CBOE AS INVESTORS IN STRATEGIC ALLIANCE WITH HEDGESTREET
SAN MATEO, CA, March 22, 2007 --
HedgeStreet®, the first all-electronic Event Derivatives Exchange,
announced today that Susquehanna International Group (SIG) and DRW
Trading Group (DRW) have launched market-making services on the
HedgeStreet Exchange.
In addition, SIG and DRW have taken investment positions in HedgeStreet.
Together with a second investment from the Chicago Board Options
Exchange (CBOE), HedgeStreet has closed its latest funding round.
"With SIG and DRW, two of the largest and best market-making firms in
the world, we expect better pricing, larger sizes, and narrower spreads
for our trading members. We expect their influence to be profound as
they phase in their participation on our Exchange. In addition,
HedgeStreet plans to launch a compelling institutional platform later
this year. That new platform will carry a similar range of contracts,
in larger denominations," said Stephen Race, Chairman and CEO of
HedgeStreet.
Eric Noll, Global Head of Strategic Relationships for SIG, said, "We're
very excited about the alliance with HedgeStreet. HedgeStreet reaches
a broader range of traders, who we believe will benefit from our twenty
years of market making expertise."
Donald Wilson, CEO of DRW, said, "HedgeStreet is breaking down barriers
for the retail trading community. By introducing Binary options,
HedgeStreet offers a simpler way for the average investor to trade
directly on an Exchange in markets that were previously hard to access.
We want to be a part of this new and growing marketplace."
William Brodsky, CBOE Chairman and CEO, added, "This strategic alliance
enhances HedgeStreet's ability to launch innovative new products.
CBOE's continued equity investment and alliance with HedgeStreet
demonstrates our commitment to further developing this unique market."
HedgeStreet, which launched in 2004, offers Binary options on a variety
of foreign currencies, commodities, real estate, hurricanes, and more.
A Binary option is a contract between traders where the Buyer takes the
position that a certain event will happen on the expiration date, and
the Seller takes the position that it will not. This makes a Binary
option a contract with a fixed payout of either $100 or $0, depending on
the outcome of the event. With a deposit of just $100, any US resident
can start trading on the HedgeStreet Exchange.
Susquehanna International Group, LLP is the parent company to The
Susquehanna International Group of companies (SIG). Headquartered in
Bala Cynwyd, Pennsylvania, SIG is a leading financial institution
focusing on trading and market making, investment banking, institutional
sales and research, private equity and venture capital. SIG makes
markets in more than 10,000 financial products, including equities,
fixed income, energy, currencies and commodities. SIG is among the
nation's largest option market makers, is the leading sector index
options trading firm and is one of the largest liquidity providers in
ETFs. To drive its continued growth, SIG leverages its highly dynamic,
internally developed quantitative trading tools and technology to assist
in its market making operations. SIG's global reach spans more than 12
offices across North America, Europe and Asia. For more information,
please visit www.sig.com.
DRW (www.drwtrading.com)
is a proprietary trading organization founded by Donald R. Wilson Jr.
in 1992. DRW specializes in market-making with a heavy emphasis on
modeling and technology. The Group has grown significantly and now
trades a diverse range of financial instruments on the floors of various
exchanges and from its advanced dealing rooms in Chicago, New York, and
London.
The Chicago Board Options Exchange (CBOE),
(www.cboe.com), the
largest U.S. options exchange and the creator of listed options, is
regulated by the Securities and Exchange Commission (SEC). Additional
information about the CBOE and its products can be accessed through the
CBOE website.
About HedgeStreet
HedgeStreet Inc. is the only U.S. designated market that lets online
investors trade innovative financial instruments based on economic
events. A designated contract market (DCM) and a registered derivatives
clearing organization (DCO), HedgeStreet is subject to regulatory
oversight by the Commodity Futures Trading Commission (CFTC). For more
information, visit www.hedgestreet.com.
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