Nadex Self-Certification to Rename “Cap” as “Ceiling”, Amend “Officers of Nadex”, “Trade Cancellation”, “Hours for Trading Contracts”, and “Terms that are Uniform Across Contracts” Rules


On January 4, 2019, 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 make the following Rulebook amendments:

1) Replace the term “Cap” with “Ceiling” in the Rulebook, as Ceiling is the term more commonly used in Nadex’s educational and marketing material to describe the upper limit of a Variable Payout Contract;

2) Amend Rule 2.3 (Officers of Nadex) to add language which would include certain other officers as appointed by the Nadex Board of Directors to the Nadex Management Team;

3) Amend Rule 5.14 (Trade Cancellations) to split section (a) into sections (a) and (b), and renumber the subsequent sections accordingly; replaces “Spread Contracts” with “Variable Payout Contracts”, in order to encompass both Call Spreads and Touch Brackets in the trade cancellation procedures;

4) Clarify Rule 5.18 (Hours for Trading Contracts), to indicate that listing hours for US or foreign holidays other than as described in the Holiday Product Schedule Guidelines are posted on the Notices page; 5) Add language to Rule 12.1 (Terms that are Uniform Across Contracts), Section (g) “Halted Markets” to mirror language from the Commission’s Regulation 38.255.

Pursuant to the 10-day filing period under Regulation 40.6(a)(3), the amendments will become effective January 21, 2019.

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