HedgeStreet Exchange FAQs - What Is HedgeStreet?

HedgeStreet is the first person-to-person online market where traders can hedge or speculate on economic outcomes. HedgeStreet is subject to regulatory oversight by the Commodity Futures Trading Commission (CFTC).

How does HedgeStreet work?

HedgeStreet lists unique financial contracts, called Contracts, and offers access to all traders. Traders can apply for membership online, and once approved, can trade Contracts with other HedgeStreet members.

What makes HedgeStreet different from other forms of financial trading?

Many of the unique financial contracts traded on HedgeStreet do not exist on any other financial market. HedgeStreet also offers small contract sizes and fees, enabling traders both large and small to participate.

How are markets made on HedgeStreet?

HedgeStreet's markets are made by traders who buy and sell Contracts by placing bids and offers for other traders to fill.

Is HedgeStreet regulated?

Yes. HedgeStreet is subject to U.S. regulatory oversight by the Commodity Futures Trading Commission (CFTC), which regulates the commodities and futures industry in much the same way the Securities and Exchange Commission (SEC) regulates the securities industry. For more information, please visit www.cftc.org.

Who is responsible for monitoring the day-to-day compliance of HedgeStreet's transactions and the market as a whole?

HedgeStreet has an internal Compliance department that is responsible for daily compliance oversight.

In addition, HedgeStreet has retained The National Futures Association (NFA), the premier independent provider of regulatory programs that safeguard the integrity of the derivatives markets, to assist with the surveillance of the HedgeStreet market - including conducting trade practice and market surveillance on trading and order data, reviewing data for any trade or market inconsistencies or exceptions, and notifying HedgeStreet if any investigation is warranted. For more information, please visit www.nfa.futures.org.

How does HedgeStreet clear?

HedgeStreet is registered as a Derivative Clearing Organization (DCO) and clears all its trades through an end-of-day settlement process. Because all of HedgeStreet's financial instruments are "fully-collateralized" prior to trade execution (which is consistent with our order of designation as a DCO) and are cash-settled, the clearing process is simply a series of accounting entries to adjust the instrument and cash positions of the members on the books of HedgeStreet.

For more information on HedgeStreet, please visit About Us.