Nadex Self-Certification to Clarify Rules, Prohibit Disregard for Orderly Execution, and Specify Terms of Market Maker Agreement

On June 16, 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 Rulebook to clarify the Market Maker Obligations, and Trade Cancellations. In particular, Rule 4.4 will remove duplicative terms reflected in the Rules and Market Maker Agreement, and generally refer to the Market Maker Agreement for specific terms of market making. Rule 5.14 will more clearly describe Nadex’s authority to adjust trade prices or cancel trades. Additionally, Nadex is amending its Rule regarding Prohibited Transactions and Activities to prohibit the intentional or reckless disregard for the orderly execution of transactions during the closing period. Finally, Nadex is amending its Market Maker Agreement to incorporate terms from the Appendix to that Agreement. Nadex plans to implement these changes for the open of business on trade date July 3, 2017.

Please click below to view the submission.