San Mateo, CA - 22 March 2007

SIG, DRW Join CBOE as investors in Strategic Alliance with HedgeStreet

HedgeStreet®, the first all-electronic Event Derivatives Exchange, announced today that Susquehanna International Group (SIG) and DRW Trading Group (DRW) have launched market-making services on the HedgeStreet Exchange.

In addition, SIG and DRW have taken investment positions in HedgeStreet. Together with a second investment from the Chicago Board Options Exchange (CBOE), HedgeStreet has closed its latest funding round.

“With SIG and DRW, two of the largest and best market-making firms in the world, we expect better pricing, larger sizes, and narrower spreads for our trading members. We expect their influence to be profound as they phase in their participation on our Exchange. In addition, HedgeStreet plans to launch a compelling institutional platform later this year. That new platform will carry a similar range of contracts, in larger denominations,” said Stephen Race, Chairman and CEO of HedgeStreet.

Eric Noll, Global Head of Strategic Relationships for SIG, said, “We’re very excited about the alliance with HedgeStreet. HedgeStreet reaches a broader range of traders, who we believe will benefit from our twenty years of market making expertise.”

Donald Wilson, CEO of DRW, said, “HedgeStreet is breaking down barriers for the retail trading community. By introducing Binary options, HedgeStreet offers a simpler way for the average investor to trade directly on an Exchange in markets that were previously hard to access. We want to be a part of this new and growing marketplace.”

William Brodsky, CBOE Chairman and CEO, added, “This strategic alliance enhances HedgeStreet’s ability to launch innovative new products. CBOE’s continued equity investment and alliance with HedgeStreet demonstrates our commitment to further developing this unique market.”

HedgeStreet, which launched in 2004, offers Binary options on a variety of foreign currencies, commodities, real estate, hurricanes, and more. A Binary option is a contract between traders where the Buyer takes the position that a certain event will happen on the expiration date, and the Seller takes the position that it will not. This makes a Binary option a contract with a fixed payout of either $100 or $0, depending on the outcome of the event. With a deposit of just $100, any US resident can start trading on the HedgeStreet Exchange.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development