Self-Certification to Amend Rules 3.6, 9.4, and 9.5


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”) hereby submits to the Commission its amendments to the Nadex Rulebook in the following Rules:

  1. Rule 3.6 Rejection of Applicant and Limitations on Trading Privileges – Adds clarifying language to distinguish the authority under Rule 3.6 for placing limitations on a trading account, from any other Rule granting authority to place limitations on a trading account;

  2. Rule 9.4 Notice and Publication of Decision – Removes references to “decision” and replaces with “disciplinary action” to avoid multiple terms with the same intended meaning. Adds language to specify when a disciplinary action is considered final;

  3. Rule 9.5 Penalties – Grants Nadex the ability to charge interest penalties on negative balances at the prime rate, as reported by the Wall Street Journal as of the date the amount becomes due, on any outstanding account balance, monetary fine, penalty fee, or disgorgement amount prevailing IRS interest rate on monetary penalties that become overdue.

In accordance with the 10-day review period set forth in Commission Regulation 40.6(b), Nadex plans to implement these Exchange Rule changes for the start of business on trade date October 27, 2018.

Please click below to view the submission.

Should you have any questions or require further information, please contact the Compliance Department.
Document Notice 961