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HEDGESTREET TO LIST SEVEN NEW CONTRACTS BASED ON POTENTIAL MERGERS & ACQUISITIONS
SAN MATEO, CA, May 17, 2007 --
The HedgeStreet Exchange announced today it will list seven new contracts enabling
traders to take positions on whether certain high-profile corporate mergers or acquisitions will occur in the near
future. The contracts, which will begin trading May 25, are based on the potential combinations of:
- Sirius Satellite Radio / XM Satellite Radio
- Microsoft/Yahoo
- News Corporation / Dow Jones
- Hershey / Cadbury
- Deutsche Borse/International Securities Exchange (ISE)
- New York Stock Exchange (NYSE)/International Securities Exchange (ISE)
- NASDAQ / Philadelphia Stock Exchange (PHLX)
"Individual investors can now take direct positions on a variety of potential corporate merger or
acquisition events, at a low cost and with very limited risk, on The HedgeStreet Exchange,"
said Stephen Race, Chairman and CEO.
"We are very proud to be pioneering new trading vehicles that afford ordinary traders a wide range of
opportunities for profit and diversification."
The new M&A contracts are binary options valued at $100 each.
As with all binaries listed on The HedgeStreet Exchange, traders will have the opportunity to "buy"
if they believe a merger or acquisition will occur by September 28, or "sell"
if they believe it will not. If the merger has been completed on or before the expiration date,
the “buyer” earns $100.
If the merger event does not occur on or by the expiration date,
the “seller” earns $100. A trader’s risk is limited to the cost of acquiring a position.
Liquidity on the exchange is provided by professional market makers including Susquehanna International Group (SIG)
and DRW Trading Group (DRW).
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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