Nadex Self-Certification to Amend Energies Expiration Value Calculation Procedures and Handling of Customer Orders

On January 20, 2017, 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 §40.6(a) of the regulations promulgated by the Commission under the Act (the “Regulations”), its intent to amend its Rule 5.7 (Handling of Customer Orders) to remove the word “knowingly” from its prohibition on FCM Members or AP/employees trading against customer orders. Additionally, Nadex is inserting the term “front-running” in its Rule prohibiting trading ahead of customer orders. These changes are being made to more accurately reflect the language found in Commission Regulation 38.152 Abusive Trading Practices Prohibited. Additionally, Nadex is amending the expiration value calculation procedure for its Crude Oil and Natural Gas contracts to revert back to the process used prior to the amended procedure described in the Self-Certification submitted to the Commission on November 23, 2016. Absent Commission objection, this submission will become effective February 6, 2017.