Nadex Self-Certification to List New Touch Bracket Contracts, Renames Spread Contracts, Amends Definitions, and Market Maker Obligations
On November 29, 2018, North American Derivatives Exchange, Inc. (“Nadex”, the “Exchange”) submitted to the Commodity Futures Trading Commission (the “Commission”), pursuant to Section 5c(c)(1) of the Commodity Exchange Act, as amended (“Act”), and section §40.2(a) of the regulations promulgated by the Commission under the Act (the “Regulations”), its intent to list new Touch Bracket Contracts, a type of Variable Payout Contract, consisting of a Cap and Floor, and a conditional Expiration Date. Touch Brackets will initially be launched in the EUR/USD, GBP/USD, USD/CHF, USD/JPY, US 500, US SmallCap 2000, US Tech 100, and Wall Street 30 markets. In order to more clearly distinguish the two type of Variable Payout Contracts that will be offered, Nadex is renaming its “Spread” Contracts as “Call Spread” Contracts. Finally, Nadex is amending its Market Maker Agreement and Market Maker Obligations in Rule 4.4, as well as several definitions in Rule 1.1, to accommodate the new Touch Brackets.
Nadex plans to launch the new contracts no earlier than trade date December 3, 2018.
*Update: this self-certification submission was modified on November 30, 2018 to correct the opening time for the US Indices Touch Brackets; on December 5, 2018 to replace the word “points” with “ticks” in the Market Maker Agreement; on December 13, 2018 to
remove extraneous language and to further clarify certain definitions which were amended in the original submission.