Nadex Announces Responses to Market Volatility

The North American Derivatives Exchange, Inc. (Nadex) has released two notices announcing the refraining from listing certain contracts and an temporary amendment to binary contracts strike width in response to the increased volatility in the underlying markets upon which the Nadex contracts are based.

According to the exchange's notice, due to activity in the underlying markets and pursuant to the authority granted in Nadex Rule 12.1(i), Nadex took the following actions:

· No GBP/USD, EUR/JPY, or GBP/JPY 5-Minute contracts were listed for the 6:15pm ET expiration time on trade date March 1, 2021;

· No GBP/JPY 5-Minute contracts were listed for the 6:05pm ET expiration time on trade date March 2, 2021;

· No GBP/JPY, or GBP/USD 5-Minute contracts were listed for the 6:05pm ET expiration time on trade date March 5, 2021.

Additionally, pursuant to Section 5c(c)(1) of the Commodity Exchange Act and Section 40.6(d) of the regulations promulgated by the Commodity Futures Trading Commission, Nadex made changes to the strike widths of various contracts during the week of March 1, 2021 as indicated in the Weekly Notice​.

Specifically, the exchange increased the strike width of most contracts, including Daily Gold Binary (from 1.5 to 6), Daily Silver Binary (from 0.05 to 0.1), Weekly EUR/USD Binary (from 0.005 to 0.01) and Weekly USD/JPY Binary (from 0.5 to 1).