The Commodity Futures Trading Commission (Commission) approved the application of HedgeStreet, Inc. (HedgeStreet) for designation as a contract market on February 18, 2004. The Commission concurrently approved HedgeStreet's application for registration as a derivatives clearing organization (DCO). HedgeStreet is a for-profit Delaware corporation, formed in 2000. HedgeStreet intends to provide its members with fully electronic, non-intermediated trading over the Internet in cash-settled, European-style binary options on various proprietary and non-proprietary indices. HedgeStreet's registration as a DCO is for the purpose of settling contracts between members. Unlike other DCOs, HedgeStreet does not offer novation or other credit enhancement.
HedgeStreet has contracted with the National Futures Association (NFA) to assist it in carrying out various self-regulatory responsibilities, including, among other things: market, trade practice and financial surveillance; and investigative and disciplinary functions. The NFA will also provide its arbitration forum for resolving member/member disputes and member/HedgeStreet disputes.
Copies of the Commission's approval letter and other supporting material prepared by CFTC staff may be obtained by contacting the Commission's Office of the Secretariat, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581, (202) 418-5100.
