Nadex Adjusts Settlement Window, Index Composition, and Settlement Methodology for Cryptocurrency products
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”), Nadex submitted notice to the Commission that Nadex will adjust the settlement window for both its Bitcoin and Ether Cryptocurrency UpDown Contracts and its Bitcoin and Ether Cryptocurrency Event Contracts from 10 seconds leading up to the calculation time to 60 seconds leading up to the calculation time as described in Nadex Rules 12.24, 12.25, 12.87 and 12.88, respectively. Additionally, Nadex is changing the prices used to calculate its settlement index value from trade prices to midpoint prices between the bid/ask spread. Also, Nadex will use data from the following underlying cryptocurrency exchanges to create the relative Indicative Indices and to calculate Contracts’ Expiration Value in order to settle the Contracts: Binance (US), Gemini, Bitstamp, LMAX Digital, and Bitflyer. The change to the new feed will take place on June 20, 2023.