Nadex Amends Rules 1.1 Definitions, 2.4 Emergency Rules, 3.1 Trading Members – Applications, Classifications, and Privileges, 5.5 Order Entry, and 7.1 Adjustments

Notice Type Notice ID
Rulebook & Agreement 1074.102119

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”) has provided to the Commission its intent to amend its Rules 1.1 Definitions, 2.4 Emergency Rules, 3.1 Trading Members – Applications, Classifications, and Privileges, 5.5 Order Entry, and 7.1 Adjustments.  Specifically, the following amendments will be made:

  1. Rule 1.1 Definitions:  Clarify the definitions of Long and Short Variable Payouts;
  2. Rule 2.4 Emergency Rules:  Amend definition of “emergency” to add language from CFTC Regulation 40.1(h);
  3. Rule 3.1 Trading Members – Applications, Classifications, and Privileges:  Add language indicating that no officer, director, member, manager, owner, or indirect owner of an entity Trading Member may maintain and/or trade another Nadex account;
  4. Rule 5.5 Order Entry:  Clarify limiting of messages submitted to the Exchange;
  5. Rule 7.1 Adjustments:  Amend language regarding Nadex authority in the event of the unavailability of the Underlying.

These changes will become effective on November 4, 2019.

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