Nadex Self-Certification to Amend Rules to Coincide with Commission Regulation Updates


On February 23, 2018, North American Derivatives Exchange, Inc. (“Nadex”, the “Exchange”) submitted to the Commodity Futures Trading Commission (the “Commission”), 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 Commission under the Act (the “Regulations”), its intent to amend Rules 9.2 (Investigations, Hearings, and Appeals) and 9.4 (Notice and Publication of Decision) to coincide with the Commission’s update of its Part 9 Regulations, specifically with respect to the removal of notice of disciplinary actions by US Post mail, and replacing with email notice, replacing written notice of disciplinary action to the Commission with the National Futures Association, and removing the requirement that notice of disciplinary action or denial of access be publicly posted for 5 business days. Additionally, the submission amends Rule 4.3 (Benefits of Becoming a Market Maker) to remove the reference to “guaranteed throughput”, and Rule 9.5 (Penalties) to clarify that Nadex has the authority to deduct any fines or disgorgement amounts from the Member’s Nadex account to satisfy the penalties. The Rule changes will become effective on March 12, 2018.

Please click below to view the submission.

Should you have any questions or require further information, please contact the Compliance Department.
Document Notice 905