View source for Nadex

{{Short description|US-based derivatives exchange}}
{{Infobox company
| name = Nadex
| logo = Nadex logo duotone.jpg
| logo_size = 150px
| type = [[Privately held company|Private]]
| genre =
| foundation = 2004<ref name="TheStreet2004"/>
| founder = John Nafeh<ref name="SJBJ2006"/>
| location_city = [[Chicago, Illinois]]
| location_country = United States
| location =
| locations =
| area_served = United States
| key_people = Travis McGhee, CEO
| industry = Finance
| products = [[Binary option]]s, Knock-outs, and Call Spreads
| services = [[Derivatives exchange]]
| owner = [[Crypto.com]]
| num_employees = 50<ref name="SJBJ2006"/>
| slogan =
| homepage = {{URL |https://www.nadex.com}}
}}
'''Nadex''' ('''Northern American Derivatives Exchange'''), formerly known as '''HedgeStreet''', is a US-based retail-focused online [[binary option]]s exchange. It offers retail trading of binary options and [[financial spread betting|spread]]s on the most heavily traded [[forex]], [[Commodity market|commodities]] and [[Stock market index|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 [[Derivative (finance)|financial derivatives]] to retail investors. HedgeStreet shut down its business in late 2007.<ref>{{Cite web|title=Nadex binary options|url=https://www.binaryoptionstrategy.eu/nadex-options-review/|access-date=2020-07-07|website=Binary options strategy|language=en-US}}</ref> 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 [[Futures exchange|derivatives exchange]] is regulated in the US by the [[Commodity Futures Trading Commission]] (CFTC).<ref name="SJBJ2006"/>  The company operates the HedgeStreet Exchange, which launched in October 2004 and provides [[Trader (finance)|traders]] with a place where they can [[Hedge (finance)|hedge against]] or [[Speculation|speculate]] on economic events and price movements.<ref name="TheStreet2004">{{cite news | title = Hedging for Small Investors | author = Steven Smith | url = http://www.thestreet.com/_tscs/options/stevensmith/10196132.html | work = TSCOptions column | publisher = [[TheStreet.com]] | date = 2004-11-25 | accessdate = 2007-12-26 | quote = 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. | url-status = dead | archive-url = https://web.archive.org/web/20071018214924/http://www.thestreet.com/_tscs/options/stevensmith/10196132.html | archive-date = 2007-10-18 }}</ref> 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 [[Derivative (finance)|derivatives]].<ref name="WSJ2004">{{cite news
| title = Firm Offers Hedging on a Small Scale | author = Daniel Nasaw |author2=Ian McDonald
| url = https://www.wsj.com/articles/SB109838600867752205
| format = Preview | work = WSJ.com | publisher = [[The Wall Street Journal]]
| date = 2004-10-22 | accessdate = 2007-12-26
| quote = 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.
}}</ref> 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.<ref name="SJBJ2006">{{cite news
| title = HedgeStreet has opened up derivatives trade to Main Street | author = Laura Counts
| url = http://sanjose.bizjournals.com/sanjose/stories/2006/05/29/story4.html
| publisher = Silicon Valley / San Jose Business Journal  | work = Print Edition
| date = 2006-05-26 | accessdate = 2007-12-26
| quote = "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."
}}</ref>
In 2007, UK-based [[IG Group]] announced intent to acquire HedgeStreet<ref name="RNS9451H">{{cite news
| author-link = Regulatory News Service | author = Regulatory News Service
| title = IG Group Hldgs plc - Acquisition
| url = http://www.hemscott.com/companies/company-news-item.do?companyId=4985&newsId=53878217548693
| work = Hemscott.com | publisher = Ipreo
| date = 2007-11-19 | accessdate = 2007-12-26
| quote = 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.
}}</ref><ref name="RNS4546J">{{cite news
| author-link = Regulatory News Service | author = Regulatory News Service
| title = IG Group Hldgs plc - Acquisition Update
| url = http://www.hemscott.com/news/rna/item.do?newsId=56416542973120
| work = Hemscott.com | publisher = Ipreo
| date = 2007-12-07 | accessdate = 2007-12-26
}}</ref> 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.<ref>{{Cite web |date=2021-12-01 |title=Crypto.com Agrees to Acquire Nadex and the Small Exchange from IG Group |url=https://crypto.com/company-news/crypto-com-agrees-to-acquire-nadex-and-the-small-exchange-from-ig-group |access-date=2021-12-01 |website=[[Crypto.com]]}}</ref> In March 2022, Crypto.com completed the purchase.
==See also==
*[[Prediction market]]
*[[Kalshi]]
*[[PredictIt]]
*[[Polymarket]]
==References==
{{reflist}}
[[Category:Companies based in Chicago]]
[[Category:Financial services companies established in 2004]]
[[Category:Economics websites]]
[[Category:Prediction markets]]
[[Category:Futures exchanges]]