Nadex Widens Acceptable Bid/Ask Spread Used in Currency Expiration Value Calculation and Refrains from Listing 5-Minute Currency Contracts

Notice Type Notice ID
Exchange 1003.040819

Pursuant to the authority granted in Nadex Rule 12.1(h), on trade date Monday, April 8, 2019, Nadex exercised its discretion to refrain from listing its 5-Minute GBP/USD and USD/CAD Binary contracts which would normally expire at 6:25pm ET, 6:30pm ET, and 6:35pm ET.  The 5-Minute GBP/USD and USD/CAD Binary contracts resumed their regular listing schedule beginning with contracts scheduled to expire at 6:40pm ET.

Additionally, pursuant to the authority granted in Nadex Rule 12.1(l), on trade date Monday April 8, 2019, the underlying USD/CAD cash markets experienced a period of decreased activity at the open of the Nadex derivative contracts.  The expiration value calculation process under normal market conditions would collect midpoints for the expiration calculation data set 10 pips wide or less between the bid and ask spread.  Due to decreased activity in the relevant underlying markets Nadex widened the acceptable bid/ask spread used in the collection of data used for expiration calculation for the 5-Minute USD/CAD Binary contract expiring at 6:10pm ET from 10 pips to 16 pips wide or less.  For the 5-Minute USD/CAD Binary contract expiring at 6:15pm ET Nadex widened the acceptable bid/ask spread used in the expiration calculation data set collection from 10 pips to 13 pips wide or less.  The 5-Minute USD/CAD Binary contracts returned to the regular acceptable bid/ask spread width of 10 pips for the collection of data used for expiration calculation for the 6:15pm ET expiry contract.

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