It has come to our attention that Daily Options, operating website DailyOptions.org, is soliciting clients by encouraging Nadex Members to provide their Nadex username and password to trading supervisor Franklin Cove, in order for Daily Options to trade the Nadex account on the Member’s behalf. Please be advised that Nadex is not affiliated in any way with Daily Options or Franklin Cove. Note that pursuant to the Nadex Membership Agreement, “You may not give control over Your account to any other person or entity and You may not control the account of any other Member. You shall maintain the confidentiality of Your access Materials and prevent the unauthorized use of Your Access Materials at all times.” Furthermore, Nadex Rule 5.19(g) states “No individual Trading Member shall trade for a person or entity other than itself and no Authorized Trader of an entity Trading Member shall trade for a person or entity other than the entity Trading Member for whom that Person is an Authorized Trader.” Accordingly, any Nadex Member who grants access to their trading account to a third party, other than an Entity Member who grants access to that Entity’s Registered Authorized Trader, is in violation of the Membership Agreement as well as Exchange Rule 5.19(g), and may be subject to disciplinary action.
Also note that an individual or entity acting as a Commodity Trading Advisor (“CTA”) is required to register with the Commodity Futures Trading Commission (“CFTC”), unless otherwise eligible for an exemption from registration. For additional information on registration, please contact the National Futures Association at (800) 621-3570 or the CFTC at (866) 366-2382.
Nadex would like to remind its Members that it is not a brokerage, it is a registered Designated Contract Market (“DCM”) and Derivatives Clearing Organization (“DCO”). As a DCM and DCO Nadex is required by CFTC Regulations to have and enforce Rules that protect the markets and its Members.
If you have any questions in this regard, or would like clarification as to the Nadex Rules, please do not hesitate to contact firstname.lastname@example.org.
Should you have any questions or require further information, please contact the Compliance Department.