Nadex Makes Several “Housekeeping” Amendments and Additions to its Rulebook and Membership Agreement


Pursuant to Section 5c(c)(1) of the Commodity Exchange Act, as amended (“Act”), and Section 40.6(a) of the regulations promulgated by the Commodity Futures Trading Commission (the “Commission”) under the Act (the “Regulations”), North American Derivatives Exchange, Inc. (“Nadex”, the “Exchange”), Nadex submitted notice to the Commission that it plans to make the following amendments and additions to its Rulebook and Membership Agreement:


  • Rule 1.1 Definitions: Nadex is adding various standard definitions in order to further clarify its business practices and terminology regularly referenced throughout this Rulebook;  in addition to adding various definitions, Nadex is amending its new d/b/a name (previously submitted to the Commission in Nadex’s September 2, 2022 Weekly Notification, and identified as Submission No. 2209-0213-1947-32) from | Derivatives, to Derivatives North America;

  • Rule 1.2 Interpretation: Nadex is adding a new Rule to clarify the proper interpretation of singular and plural words, gender, references to statutory provisions, use of the word “including”, and headings;

  • Rule 1.3 Date and Time References: Nadex is adding a new Rule to specify that all times and dates refer to the Eastern Time zone;

  • Rule 1.4 Conflicts: Nadex is adding a new Rule to clarify that transaction-specific Rules will prevail over Rules of general application in the event of a conflict;

  • Rule 2.2 Restrictions on Who May be Members of the Board, Members of Disciplinary Committees, Members of Arbitration or Oversight Panels, or Ten Percent or Greater Owners: Nadex is clarifying that any individual who may be denied registration, or whose registration is suspended, restricted, or conditioned by the CFTC pursuant to section 8a(2) of the CEA may not serve as a Director or on any Disciplinary Committee or Panel;

  • Rule 2.10 Consent to Jurisdiction: Nadex is amending Rule 2.10 to clarify that “Participants” and “ISVs” – both newly added definitions – consent to Nadex’s jurisdiction;

  • Rule 3.1 Trading Members – Applications, Classifications, and Privileges: Nadex is clarifying that not only will a Trading Member use the Financial Institution on record to deposit to the Member’s Nadex account, but that each deposit is authorized by the Member;

  • Rule 3.5 Supervision: Nadex is adding new Rule 3.5 to supplement references to an Entity Trading Member’s and FCM Member’s responsibilities to supervise their employees, Authorized Traders, and associated persons as stated in Rules 3.1(ii)(6), 3.2(v), 3.3(e), and 3.4(j)(i);

  • Former Rules 3.5 Authorized Traders and 3.6 Rejection of Applicant and Limitations of Trading Privileges: Nadex is renumbering these Rules as 3.6 and 3.7 to accommodate new Rule 3.5 Supervision.

  • Former Rule 3.7 Communication Between Nadex and Members: Nadex is renumbering this Rule as 3.8 to accommodate new Rule 3.5 Supervision; Nadex is amending new Rule 3.8 to specify that communication by Nadex will be in the English language, and this includes communication to both Members and other Participants.

  • Former Rule 3.8 Dues, Fees, and Expenses Payable By Members: Nadex is renumbering this Rule as 3.9 to accommodate new Rule 3.5 Supervision.

Membership Agreement:

  • Add new d/b/a name, | Derivatives North America (submitted through the Commission Portal as a Weekly Rule Change Notification on September 2, 2022);

  • Clarify that payments owed to a Member will be deposited to the bank account on the Member’s Account, or other Nadex approved financial account, as pursuant to Nadex Rule 3.1(a)(i)(2), the Member may have an approved financial account on record that is not a bank account;

  • Indicate that all communication will be in the English language to mirror the same amendment to renumbered Rule 3.8;

  • Clarify that the electronic signature of the applicant for Membership evidences the applicant’s intent to be bound by the terms of the Membership Application and all documents incorporated by reference;

  • Delete an apparent typographical error.

These amendments and additions will become effective October 3, 2022.  

Should you have any questions or require further information, please contact the Compliance Department.
Document Notice 1636 Rule Certification Various Housekeeping Rule Amendments and Additions