The North American Derivatives Exchange (Nadex) has been notified by the Commodity Futures Trading Commission (CFTC) that its application to offer “Political Event” Binary Options has been received and will be subject to the CFTC's 90 day review process.
By Paolo Palazzi-Xirinachs
Wednesday, January 4, 2012
While we believe these contracts meet all requirements for immediate listing, we respect the CFTC's decision and we are happy to assist their review. We are confident the Commission will see the merits of providing a regulated market for Political Event contracts. Similar contracts are currently offered only on unregulated venues – one of which is domiciled outside the United States – that do not provide the basic safeguards afforded to users of regulated markets in the U.S.
Nadex is an exchange focused on the individual retail trader, founded on the belief that everyone – not just large institutions and Wall Street firms – should be afforded an opportunity to trade markets. All of the contracts listed on Nadex are low cost, limited-risk contracts designed to decrease the capital needed to trade financial markets. Nadex has intentionally set position limits at 2,500 contracts in order to prevent market manipulation and encourage market participants of all sizes to take an economic position on the outcome of some of the most important national election results in 2012.
Read more about our Political Event Contracts response in the Press Release.
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