Nadex Amends Maximum Bid/Ask Spread in Currency Settlement
Pursuant to Section 5c(c)(1) of the Commodity Exchange Act, and Commission Regulation §40.6(a), Nadex has submitted to the Commission its intent to widen the maximum acceptable spread between the underlying currency market’s bid and ask prices, which Nadex obtains to determine the 10 midpoint prices included in the data set used to calculate the contracts’ final expiration value. Currently the maximum acceptable spread is five pips wide, with the exception of the GBP/JPY and AUD/JPY contracts which have a 10 pip maximum spread. This submission would amend all acceptable bid/ask spreads to a 10 pip maximum. Nadex plans to implement these changes on February 9, 2015.