CFTC prohibits NADEX political event derivatives contract

The CFTC issued an order on April 2 prohibiting the North American Derivatives Exchange (Nadex) from listing or making available for clearing or trading a set of self-certified political event contracts. The contracts are binary option contracts that pay out based on the results of this year’s elections.

Nadex self-certified the contracts on December 19, 2011. The CFTC initiated a 90-day review period of the contracts on January 3, 2012. As a result of the findings, the CFTC determined that the contracts involve gaining and do not advance the public interest. The contracts cannot be listed, be cleared or traded.

In a separate letter, the CFTC requested that Nadex withdraw its self-certification of related rule amendments that were submitted by Nadex to enable trading the contracts.

Read more about the the CFTC order here.

Photo credit: Chilli media.

Share this post

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email

Stay On Top Of The Debt Relief Industry's Regulatory Landscape

On November 6-7, 2022, Shipkevich PLLC will be hosting a Regulatory Workshop in Costa Mesa, California focusing on the fundamental regulatory issues facing debt relief professionals and how they can adapt.