The
HedgeStreet Exchange plans to launch a class of futures contracts that
allows investors to trade on the anticipated revenues and earnings per
share of large public corporations.
The "Corporate
Action" contracts, as they are called by the exchange, have been
certified by the Commodity Futures Trading Commission (CFTC) and will
begin trading on June 22 and settle on the date of each company's next
quarterly earnings reports.
ExxonMobile Corp. and Wal-Mart Inc. will be the first two companies tracked by the contracts.
"We are opening
opportunities for traders of every variety to hedge their risk or
profit from their views on corporate financial results of companies
that have profound effects on national and global economies," said
Stephen Race, chairman and CEO of The HedgeStreet Exchange.
The new contracts are binary options valued at $100 each, according to the exchange.
HedgeStreet Inc.
is a regulated online exchange in San Mateo, Calif., that allows
investors to speculate on economic events and price changes. The
exchange's contracts have been tied to economic variables including
regional housing prices and hurricane damages.