HedgeStreet, a US-based online market that aims to help investors trade innovative financial instruments based on economic events, has appointed The Clearing Corporation (CCorp) to provide it with clearing services.
Under the agreement, CCorp clearing participants, who are also HedgeStreet members, can permit their customers to trade HedgeStreet products in the same way contracts are traded on other exchanges. This means that any individual or institution that has a relationship with a CCorp clearing participant can trade on HedgeStreet and clear through CCorp, thus dramatically opening up the marketplace.
“This arrangement opens up institutional trading on HedgeStreet, and with HedgeStreet’s ability to quickly create and deploy financial instruments on its exchange, will create a new paradigm for the derivatives industry that will merge the OTC and the listed exchange markets,” says John Nafeh, Chairman and CEO of HedgeStreet. “We anticipate that institutional traders, hedge funds and others will take advantage of the arrangement with CCorp.”
Richard Jaycobs, CEO of The Clearing Corporation, says HedgeStreet’s class of financial instruments has enormous potential. “CCorp is proud to take the lead in clearing these contracts,” he says. “Our relationship with HedgeStreet demonstrates our commitment to extending the spectrum of cleared products in the marketplace.”