independent

Sunday 20 April 2014

US demand spurs Dublin firm's exchange bid

A DUBLIN company, Trade Exchange Network, is applying to become the first European trading & betting exchange to be regulated by the Commodity Futures Trading Commission.

A DUBLIN company, Trade Exchange Network, is applying to become the first European trading and betting exchange to be regulated by the Commodity Futures Trading Commission (CFTC).

Trade Exchange Network plans to file the application in the name of one of its subsidiaries, in a move that will give it huge credibility in the fast-growing world of online trading and betting exchanges.

The CFTC applies a tough code of conduct to protect market users and ensure exchanges are run in line with best taxation and customer security practices.

If Trade Exchange Network is successful, it will have to meet the same standards as the biggest exchanges in the world - including Chicago Mercantile Exchange, Chicago Board of Trade and the New York Mercantile Exchange, which are all regulated by the CFTC.

This will make it more attractive to US users, particularly in the financial services industry.

TEN chief executive John Delaney said his new 'binary options exchange' planned to offer products based on equity indices, economic indicators and real estate, among others.

"These will be unique products on a regulated platform," he said. "It is a natural development of our current offering."

Demand among US members and recent legislative changes in the US were also big factors in TEN's decision to set up a dedicated subsidiary regulated by the CFTC.

Mr Delaney said his company had recently raised between ?1m and ?2m from existing shareholders to fund its application.

Previous investors include Paul Tudor Jones, who heads up Tudor Investment Corporation which has $10bn under management, and mega-rich serial investor Dean LeBaron.

It has also received funds from Queensland Press, an associated company of News International which is run by media baron Rupert Murdoch.

It currently operates three betting exchanges on-line called Intrade.com, tradesport.com and tradebetx.com, pitched primarily at the American market, although it has customers from around the world.

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