NORTH AMERICANDERIVATIVES EXCHANGE, INC.
(NADEX)
RULES
d/b/a

Dated: 8/14/2024

TABLE OF CONTENTSNORTH AMERICAN DERIVATIVES EXCHANGE, INC. (NADEX) ......................................................... 1
INTRODUCTION .................................................................................................................................... 8
DEFINITIONS ................................................................................................................ 8
RULE 1.1

DEFINITIONS ................................................................................................... 8
INTERPRETATION ......................................................................................... 17
DATE AND TIME REFERENCES .................................................................... 17
CONFLICTS .................................................................................................... 17

MARKET GOVERNANCE ............................................................................................ 18
POWERS OF NADEX’S BOARD OF DIRECTORS ........................................... 18
RULE 2.2

RESTRICTIONS ON WHO MAY BE MEMBERS OF THE BOARD, MEMBERS
OF DISCIPLINARY COMMITTEES, MEMBERS OF ARBITRATION OR
OVERSIGHT PANELS, OR TEN PERCENT OR GREATER OWNERS ............ 18
OFFICERS OF NADEX .................................................................................... 18
EMERGENCY RULES ..................................................................................... 19
COMMITTEES AND SUBCOMMITTEES ....................................................... 21
VOTING BY INTERESTED BOARD MEMBERS.............................................. 22
INDEMNIFICATION OF DIRECTORS, OFFICERS, AND OTHERS ................. 23
PROHIBITION ON USE OF MATERIAL, NON-PUBLIC INFORMATION ........ 23
LIMITATION ON TRADING BY AFFILIATES ................................................. 24
CONSENT TO JURISDICTION ....................................................................... 24

MEMBERS .................................................................................................................. 26
TRADING MEMBERS – APPLICATIONS, CLASSIFICATIONS, AND
PRIVILEGES ................................................................................................... 26
FCM MEMBERS – APPLICATIONS, CLASSIFICATIONS, AND PRIVILEGES........................................................................................................................ 29
MEMBER OBLIGATIONS ............................................................................... 30
FCM MEMBER OBLIGATIONS ...................................................................... 32
SUPERVISION ................................................................................................ 37
AUTHORIZED TRADERS ................................................................................ 37
REJECTION OF APPLICANT AND LIMITATIONS OF TRADING PRIVILEGES........................................................................................................................ 38i

COMMUNICATIONS BETWEEN NADEX AND MEMBERS AND OTHERPARTICIPANTS .............................................................................................. 39
DUES, FEES, AND EXPENSES PAYABLE BY MEMBERS ............................. 39
MARKET MAKERS...................................................................................................... 40
REGISTRATION OF MARKET MAKERS ........................................................ 40
APPOINTMENT OF MARKET MAKERS ........................................................ 40
BENEFITS OF BECOMING A MARKET MAKER ............................................ 40
OBLIGATIONS OF MARKET MAKERS .......................................................... 41
METHOD FOR MEMBERS TO TRADE CONTRACTS ................................................ 43
PRIOR REVIEW OF RISK DISCLOSURE STATEMENT AND THESE RULES
AND ACCEPTANCE OF TERMS OF MEMBERSHIP AGREEMENT ISREQUIRED ...................................................................................................... 43
TRADING MEMBER AND AUTHORIZED TRADER ACCESS TO NADEX ..... 43
TRADING CONTRACTS – TRADING MEMBERS .......................................... 44
TRADING CONTRACTS – CUSTOMERS OF FCM MEMBERS ..................... 47
ORDER ENTRY ............................................................................................... 49
RECORDKEEPING OF FCM CUSTOMER ORDERS ....................................... 51
HANDLING OF CUSTOMER ORDERS ........................................................... 52
TRANSFER TRADES AND ADJUSTED ORDERS ........................................... 52
DISPUTED ORDERS ....................................................................................... 53
ACCEPTABLE ORDERS ................................................................................. 54
PRIORITY OF ORDERS ................................................................................... 55
FILLING ORDERS TO TRADE CONTRACTS .................................................. 55
MODIFICATION AND CANCELLATION OF ORDERS.................................... 55
TRADE CANCELLATIONS ............................................................................. 55
INVALIDATION OF ORDERS UPON SUSPENSION OR REVOCATION OF FCM
MEMBER STATUS ......................................................................................... 57
INVALIDATION OF TRADES UPON SUSPENSION OR REVOCATION OF FCM
MEMBER STATUS ......................................................................................... 57
VIEWING THE MARKET AND EXECUTED ORDERS ..................................... 57
HOURS FOR TRADING CONTRACTS ............................................................ 57
PROHIBITED TRANSACTIONS AND ACTIVITIES ........................................ 58
ii

SPECULATIVE POSITION LIMITS ................................................................. 61
CLEARING AND SETTLING CONTRACT TRADES, CONTRACTS AT EXPIRATION,
AND MEMBER WITHDRAWAL REQUESTS AND REGULATORY REPORTING OF
SWAP DATA ............................................................................................................... 63
CLEARANCE AND SUBSTITUTION ............................................................... 63
SETTLING CONTRACT TRADES ................................................................... 63
SETTLING CONTRACTS AT EXPIRATION ................................................... 63
SETTLING MEMBER WITHDRAWAL REQUESTS ......................................... 65
REGULATORY REPORTING TO SWAP DATA REPOSITORY ....................... 65
ADJUSTMENTS NECESSITATED BY MATERIAL CHANGES IN THE UNDERLYING..................................................................................................................................... 66
ADJUSTMENTS ............................................................................................. 66
GOVERNMENT ACTIONS .............................................................................. 66
INVESTMENT OF MEMBER ACCOUNT FUNDS ....................................................... 67
RULE ENFORCEMENT ............................................................................................... 68
MONITORING THE MARKET......................................................................... 68
INVESTIGATIONS, HEARINGS, AND APPEALS ........................................... 68
SETTLEMENT OF INVESTIGATIONS ............................................................ 72
NOTICE AND PUBLICATION OF DISCIPLINARY ACTION ........................... 73
PENALTIES .................................................................................................... 74
SUMMARY SUSPENSION.............................................................................. 74
REPRESENTATION BY COUNSEL................................................................. 75
LIMITATION OF LIABILITY; TIME PERIOD IN WHICH TO BRING ACTIONS;GOVERNING LAW; ARBITRATION............................................................................. 77
LIMITATION OF LIABILITY ............................................................................ 77
ARBITRATION OF MEMBER-MEMBER DISPUTES ...................................... 77
ARBITRATION OF NADEX-MEMBER DISPUTES .......................................... 78
ARBITRATION OF FCM MEMBER-CUSTOMER DISPUTES ......................... 78
FAILURE TO ABIDE BY ARBITRATION DECISION ....................................... 78
COMMISSION REGULATIONS THAT HAVE BEEN ADAPTED TO BE PART OF THE
RULES ......................................................................................................................... 79iii

ACTIVITIES OF SELF-REGULATORY ORGANIZATION EMPLOYEES AND
GOVERNING MEMBERS WHO POSSESS MATERIAL, NON-PUBLICINFORMATION (ADAPTED FROM COMMISSION REGULATION 1.59) ...... 79
SERVICE ON SELF-REGULATORY ORGANIZATION GOVERNING BOARDSOR COMMITTEES BY PERSONS WITH DISCIPLINARY HISTORIES(ADAPTED FROM COMMISSION REGULATION 1.63) ................................ 82
VOTING BY INTERESTED MEMBERS OF SELF-REGULATORYORGANIZATION GOVERNING BOARDS AND VARIOUS COMMITTEES(ADAPTED FROM COMMISSION REGULATION 1.69) ................................ 85
TERMS OF CONTRACTS TRADED ON NADEX ......................................................... 91
TERMS THAT ARE UNIFORM ACROSS CONTRACTS ................................. 91– 12.3 [RESERVED] ........................................................................................ 93
GOLD VARIABLE PAYOUT CONTRACTS ..................................................... 93
GOLD BINARY CONTRACTS .......................................................................100
SILVER VARIABLE PAYOUT CONTRACTS .................................................104
SILVER BINARY CONTRACTS.....................................................................112
CRUDE OIL VARIABLE PAYOUT CONTRACTS...........................................115
CRUDE OIL BINARY CONTRACTS ..............................................................122
NATURAL GAS VARIABLE PAYOUT CONTRACTS ....................................126
NATURAL GAS BINARY CONTRACTS ........................................................133– 12.23 [RESERVED]....................................................................................137
BITCOIN CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS ................................................................................................137
ETHER CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS ................................................................................................140
CURRENCY EXCHANGE AUD/USD VARIABLE PAYOUT CONTRACTS ....142
CURRENCY EXCHANGE AUD/USD BINARY CONTRACTS........................149
CURRENCY EXCHANGE EUR/USD VARIABLE PAYOUT CONTRACTS ....153
CURRENCY EXCHANGE EUR/USD BINARY CONTRACTS ........................160
CURRENCY EXCHANGE GBP/USD VARIABLE PAYOUT CONTRACTS ....164
CURRENCY EXCHANGE GBP/USD BINARY CONTRACTS ........................170
CURRENCY EXCHANGE USD/CAD VARIABLE PAYOUT CONTRACTS ....175
CURRENCY EXCHANGE USD/CAD BINARY CONTRACTS........................181
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CURRENCY EXCHANGE USD/CHF VARIABLE PAYOUT CONTRACTS ....185
CURRENCY EXCHANGE USD/CHF BINARY CONTRACTS ........................192
CURRENCY EXCHANGE USD/JPY VARIABLE PAYOUT CONTRACTS.....195
CURRENCY EXCHANGE USD/JPY BINARY CONTRACTS ........................202
CURRENCY EXCHANGE EUR/JPY VARIABLE PAYOUT CONTRACTS .....206
CURRENCY EXCHANGE EUR/JPY BINARY CONTRACTS ........................212
CURRENCY EXCHANGE GBP/JPY VARIABLE PAYOUT CONTRACTS ....216
CURRENCY EXCHANGE GBP/JPY BINARY CONTRACTS ........................223
CURRENCY EXCHANGE EUR/GBP VARIABLE PAYOUT CONTRACTS ....227
CURRENCY EXCHANGE EUR/GBP BINARY CONTRACTS ........................233
CURRENCY EXCHANGE AUD/JPY VARIABLE PAYOUT CONTRACTS ....236
CURRENCY EXCHANGE AUD/JPY BINARY CONTRACTS ........................242
CURRENCY EXCHANGE USD/MXN BINARY CONTRACTS.......................245– 12.53 [RESERVED]....................................................................................248
JAPAN 225 VARIABLE PAYOUT CONTRACTS..........................................248
JAPAN 225 BINARY CONTRACTS .............................................................252– 12.57 [RESERVED]....................................................................................255
US 500 VARIABLE PAYOUT CONTRACTS .................................................255
US 500 BINARY CONTRACTS .....................................................................262
US SMALLCAP 2000 VARIABLE PAYOUT CONTRACTS ..........................266
US SMALLCAP 2000 BINARY CONTRACTS ..............................................273
US TECH 100 VARIABLE PAYOUT CONTRACTS ......................................277
US TECH 100 BINARY CONTRACTS ..........................................................284
WALL STREET 30 VARIABLE PAYOUT CONTRACTS ...............................289
WALL STREET 30 BINARY CONTRACTS ...................................................295– 12.75 [RESERVED]....................................................................................300
CORN YIELDS EVENT CONTRACTS ...........................................................300
SOYBEANS YIELDS EVENT CONTRACTS ..................................................302
CRUDE OIL INVENTORIES CHANGE EVENT CONTRACTS .......................303
NATURAL GAS NET CHANGE (BCF) EVENT CONTRACTS ......................305v

CONSUMER PRICE INDEX – ALL ITEMS LESS FOOD AND ENERGY EVENTCONTRACTS ................................................................................................306
CONSUMER PRICE INDEX – FOOD AT HOME EVENT CONTRACTS .......308
CONSUMER PRICE INDEX – FOOD AWAY FROM HOME EVENTCONTRACTS ................................................................................................310
CONSUMER PRICE INDEX EVENT CONTRACTS .......................................311
FEDERAL BALANCE SHEET TOTAL ASSETS (MILLIONS) EVENTCONTRACTS ................................................................................................313
NEW HOME SALES EVENT CONTRACTS ..................................................314
RETAIL SALES CHANGE EVENT CONTRACTS ..........................................316
BITCOIN CRYPTOCURRENCY EVENT CONTRACT ...................................317
ETHER CRYPTOCURRENCY EVENT CONTRACTS ....................................320– 12.90 [RESERVED]....................................................................................323
LITECOIN (LTC) CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE
PAYOUT CONTRACTS ................................................................................323
DOGECOIN (DOGE) CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE
PAYOUT CONTRACTS ................................................................................326
SHIBA INU (SHIB) CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE
PAYOUT CONTRACTS ................................................................................328
BITCOIN CASH (BCH) CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE
PAYOUT CONTRACTS ................................................................................331[RESERVED]..................................................................................................333
XRP (XRP) CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS ................................................................................................333
BITCOIN CASH (BCH) CRYPTOCURRENCY EVENT CONTRACTS ...........336
LITECOIN (LTC) CRYPTOCURRENCY EVENT CONTRACTS .....................339
SHIBA INU (SHIB) CRYPTOCURRENCY EVENT CONTRACTS ..................342....................................................................................... Error! Bookmark not defined.
DOGECOIN (DOGE) CRYPTOCURRENCY EVENT CONTRACTS ................345
CHAINLINK (LINK) CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE
PAYOUT CONTRACTS .................................................................................348
AVALANCHE (AVAX) CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE
PAYOUT CONTRACTS ................................................................................351
vi

POLKADOT (DOT) CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE
PAYOUT CONTRACTS ................................................................................353
POLKADOT (DOT) CRYPTOCURRENCY EVENT CONTRACTS ..................355
AVALANCHE (AVAX) CRYPTOCURRENCY EVENT CONTRACTS .............358
CHAINLINK (LINK) CRYPTOCURRENCY EVENT CONTRACTS .................361
STELLAR (XLM) CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE
PAYOUT CONTRACTS .................................................................................364
STELLAR (XLM) CRYPTOCURRENCY EVENT CONTRACTS .....................367
RULE 13.10[RESERVED]…………………………………………………………………………………………………… 368

RULE 13.11

HEDERA
HASHGRAPH(HBAR)CRYPTOCURRENCY
EVENT
CONTRACTS…………………………………………………………………………………………………. 368

RULE 13.12[RESERVED]…………………………………………………………………………………………………… 371

RULE 13.13

HEDERA HASHGRAPH (HBAR) CRYPTOCURRENCY “TOUCH BRACKET”
VARIABLE PAYOUT CONTRACTS………………………………………………………………. 371

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RULES OF NORTH AMERICAN DERIVATIVES EXCHANGE, INC.
INTRODUCTION
The Commodity Exchange Act (“CEA”) requires that North American Derivatives Exchange, Inc.,d/b/a crypto.com | Derivatives North America, (“Nadex”) and other contract markets andderivatives clearing organizations adopt rules governing the way they conduct their business.
Those rules generally must be filed with the Commodity Futures Trading Commission(“Commission”) and generally cannot be amended without giving notice to the Commission,
which can reject proposed rules and proposed amendments to existing rules. The following rules
are the rules of Nadex (“Rules”) that inform Members and others of how the Nadex market (the“Market”) operates and of each Member’s rights and obligations. Please remember that theseRules may be amended in the future, and if they are amended, Members will be required to abideby the Rules as amended. Nadex will notify all Members any time there is an amendment to theRules.
DEFINITIONSDEFINITIONSWhen used in these Rules:“Affiliate” means any corporate affiliate of Nadex.
“Appeals Panel” means a panel comprised of individuals appointed by the Board toconsider appeals under Rule 9.3.
“Applicable Law” means with respect to any Person, any statute, law, regulation, rule orordinance of any governmental authority applicable to such Person, including the CEA, CFTC
Regulations, and the rules or regulations of any relevant Self-Regulatory Organization.
“Authorized Trader” means an individual authorized by an Entity Trading Member andapproved by Nadex to enter and execute transactions on the Market for that Entity Trading
Member’s account, provided the Entity Trading Member maintains supervisory authority oversuch individual’s trading activities.
“Binary Contract” means the right to receive a fixed Settlement Value per contract, from
Nadex on the Settlement Date dependent upon whether the market participant holds a longposition or short position in a Binary Contract. If the market participant holds a long position in a
Binary Contract, the participant has the right to receive a fixed Settlement Value from Nadex on
the Settlement Date, if, and only if, the Binary Contract’s Payout Criteria encompasses the
Expiration Value at Expiration. Conversely, if the market participant holds a short position in a
Binary Contract, the participant has the right to receive a fixed Settlement Value if, and only if, theBinary Contract’s Payout Criteria does NOT encompass the Expiration Value at Expiration.
8

“Board of Directors” or “Board” means the Nadex board of directors consisting of eligible
individuals as further described in Rule 2.2, with the powers enumerated in Rule 2.1.
“Business Day” shall have the same meaning as defined in 31 CFR §802.201, andexcludes federally recognized holidays as set forth in 5 U.S.C. §6103. The Exchange may offer alimited or full listing of contracts on a federally recognized holiday or other non-Business Day,
however, the holiday or other non-Business Day shall still be considered a non-Business Day for
purposes of determining the Start and End Dates for a contract’s Underlying market.
“Calculation Time” is the time the Expiration Value is calculated.
“Call Spread Contract” is a type of Variable Payout Contract, having a fixed Expiration
Date, wherein the holder of a Long Call Spread Variable Payout Contract or a Short Call Spread
Variable Payout Contract may have a right to receive a variable Settlement Value. Such Variable
Payout Contracts may be classified as “Call Spread(s)” or “Narrow Call Spread(s)”.
“CEA” means the Commodity Exchange Act, as it may be amended from time to time.
“CFTC” means the U.S. Commodity Futures Trading Commission.
“Ceiling” means the maximum rate, level, amount, measure or other value of theUnderlying of a Variable Payout Contract that may be the Expiration Value or the Closing Trade
Value. If the actual rate, level, amount, measure, or other value of the Underlying meets or exceeds
the Ceiling at Expiration, the Ceiling will be the Expiration Value.
“Class” means all Contracts of the same Type with the same Underlying.
“Closing Trade Value” means the rate, level, amount, measure, or other value of a Binary,Call Spread, or Touch Bracket at which the Contract is closed in a Member’s or Customer’s
account.
“Commission Regulations” means the rules, regulations and interpretations promulgatedby the CFTC pursuant to the CEA, as in effect from time to time.
“Committee” means a committee established by the Board.
“Commodity Futures Trading Commission” or “Commission” means the Federal
regulatory agency established by the Commodity Futures Trading act of 1974 to administer the
Commodity Exchange Act.
“Contract” means a Call Spread or Touch Bracket Variable Payout Contract, Knock-out
Touch Bracket Contract, UpDown Touch Bracket Contract, Knock-out, UpDown Options, Strike
Option Contract, Event Contract or a Binary Contract.

9

“Correspondent Account” means an account as that term is defined in 31 CFR
1010.605(c).
“crypto.com | Derivatives North America” is the name under which Nadex may conductbusiness; any reference to crypto.com | Derivatives North America may be substituted with
“Nadex” without changing the meaning of the term.
“Customer” means a Commodity Customer, a Cleared Swap Customer, a FCM Member ora Trading member of Nadex, as the context requires. In this regard,(a)“Commodity Customer” has the meaning set forth in Commission Regulation
1.3(k);(b)“Cleared Swap Customer” has the meaning set forth in Commission regulation
22.1;

(c)

“DCO Customer” has the same meaning as the definition “customer” set forth inCommission Regulation 190.01(l) and section 761(9) of the Bankruptcy Code andincludes FCM Members and Trading Members of Nadex.

“Designated Contract Market” or “DCM” has the meaning set forth in Commission
Regulation 1.2“Derivatives Clearing Organization” or “DCO” has the meaning set forth in Commission
Regulation 1.3.
“Director” means a member of the Nadex Board of Directors.
“Dollar Multiplier” means the monetary amount by which the rate, level, amount, measure,or other value of an Underlying of a Variable Payout Contract is multiplied to determine theSettlement Value.
“Emergency” shall have the meaning set forth in Rule 2.4.
“End Date” means the last day on which a delivery month will be used as the Underlying
for Nadex contracts.
“Entity” means a non-individual Person.
“Event Contract” means a Contracts in an excluded commodity (as defined in Section
1a(19) of the Commodity Exchange Act) that is based upon the occurrence, extent of an
occurrence, or contingency.

10

“Exchange” means crypto.com | Derivatives North America and its respective successors,
by merger or otherwise. “Expiration” means the time on the Expiration Date established by theseRules at which a Contract expires and the Expiration Value of that Contract is determined.
“Expiration Date” means the date established by these Rules on which the Expiration
Value of each Contract is determined.
“Expiration Value” means the rate, level, amount, measure, or other value of the Underlying
at Expiration as calculated and/or published by the Source Agency.
“FCM” means a Futures Commission Merchant registered with the CFTC.
“FCM Member” means any Member that is registered with the Commission as a Futures
Commission Merchant and as a swap firm and is authorized by Nadex to intermediate orders ofCommodity Customers or Cleared Swap Customers on the Market.
“Floor” means the minimum rate, level, amount, measure, or other value of the Underlying
of a Variable Payout Contract that may be the Expiration Value or the Closing Trade Value. If theactual rate, level, amount, measure or other value of the Underlying meets or falls below the Flooron the Expiration Date, the Floor will be the Expiration Value.
“Foreign Bank” means a bank as that term is defined in 31 CFR 1010.100(u).
“Government Agency” means the CFTC and/or any other governmental agency ordepartment.
“Independent Software Vendor” or “ISV” means any Person that offers services thatprovide access to the Nadex Trading System. In order to provide access to the Nadex Trading
System the ISV must enter into an ISV Agreement with the Exchange and be approved by the
Exchange to provide said services.
“Index Value”, also known as an “Indicative Index”, is a value calculated once per second
throughout a Contract’s duration, which the Source Agency may release as an Expiration Valueas provided for in the Contract specifications in Chapter 12, or to serve as an indication of thevalue of a Contract’s Underlying at a given point in time.
“Last Trading Day” means, for a particular Contract, the last date on which that Contract
may be traded on the Market.
“Limit Order” means a request submitted to the Exchange to buy or sell a set number ofcontracts, in a particular product offered by Nadex, at a specified price or better price if a better
price is available. The following are permissible Nadex Limit Order types, although certain ordertypes may only be available on particular platforms or to particular Member types: “Fill or Kill
Order” or “FOK” is a Limit Order that will be cancelled if the Order cannot be immediately filled inits entirety.
11

“Immediate or Cancel Order” or “IOC” is a Limit Order that can be filled in whole or in part,with any remaining quantity cancelled.
“Good ‘Til Cancel Order” or “GTC” is a Limit Order which will remain on the market until it
is filled, cancelled, renewed or the contract expires. Any remainder of a partially filled GTC Orderwill stay on the market until it is filled, cancelled, renewed or the contract expires.
“Long Variable Payout Contract” means (i) if the Expiration Value is greater than theOpening Trade Value, but does not exceed the Ceiling, the right to receive any collateral posted
to establish the position plus any positive number resulting from subtracting the Opening Trade
Value from the Expiration Value, and then multiplying that resulting number by the Dollar
Multiplier; or (ii) if the Expiration Value is greater than the Opening Trade Value and exceeds theCeiling, the right to receive any collateral posted to establish the position plus any positive number
resulting from subtracting the Opening Trade Value from the Ceiling, and then multiplying that
resulting number by the Dollar Multiplier; or (iii) if the Expiration Value is less than the Opening
Trade Value, but does not exceed the Floor, the right to receive any collateral posted to establish
the position minus any positive number resulting from subtracting the Expiration Value from theOpening Trade Value, and then multiplying that resulting number by the Dollar Multiplier; or (iv) if
the Expiration Value is less than the Opening Trade Value and exceeds the Floor, the right toreceive any collateral posted to establish the position minus any positive number resulting fromsubtracting the Floor from the Opening Trade Value, and then multiplying that resulting number
by the Dollar Multiplier.
“Market Order” means a request submitted to the Exchange to buy or sell a set numberof contracts, in a particular product offered by Nadex, at the market price. The following are
permissible Nadex Market Order types, although certain order types may only be available onparticular platforms or to particular Member types:“Market Order With Protection” or “MOP” is a Market Order that will attempt to fill, in
whole or part, at the current displayed price or better, or within a pre-determined number of points(Tolerance Protection) worse than the specified display price. The remainder of any Market OrderWith Protection that cannot be immediately filled either at the current displayed price or better, or
within the Tolerance Protection, will be cancelled.
“Market Maker” means a Member that is granted certain privileges in exchange forassuming certain responsibilities as set forth in Chapter 4 of these Rules for the purpose ofcreating liquidity for certain Classes of Contracts.
“Member” means a Person who is approved by Nadex to be a Trading Member or a FCM
Member and who is bound by these Rules as they may be amended from time to time.
“Membership Agreement” is the Nadex Membership Agreement as set forth on the Nadex
website, to which all Nadex Members agree to comply.

12

“Midpoint” is the price included in the data set used in the calculation of the Expiration
Value of a foreign currency contract. A Midpoint is calculated by adding the bid price and the ask
price of the relevant underlying spot currency market together and then dividing that number by
two (2). For example, if the bid price is 1.3400 and the ask price is 1.3402, the two numbers areadded together (totaling 2.6802) and then divided by two (2), equaling a Midpoint of 1.3401. If the
spread between a particular bid price and ask price is deemed too wide (greater than ten (10)pips), those prices will not be used to calculate a Midpoint and will thus not be included within
the data set used in the Expiration Value calculation.
“Modification Event” means an event as described in the Market Maker Agreement.
“Nadex” means the abbreviated form of North American Derivatives Exchange, Inc.; anyreference to “Nadex” may be substituted with crypto.com | Derivatives North America withoutchanging the meaning of the term.
“Nadex Trading System” a.k.a. “crypto.com | Derivatives North America Trading System”
means the electronic trade execution system that is used for trading Contracts, including any
licensed software that is a part thereof from time to time, and any successor electronic trading
system thereto.
“Non Post-Only Order” is an Order that did not originate as a Post-Only Quote.
“North American Derivatives Exchange, Inc.” means the legal entity North American
Derivatives Exchange, Inc., a Delaware corporation, registered with the Commodity Futures
Trading Commission as a Designated Contract Market (“DCM”) and Derivatives Clearing
Organization (“DCO”), that operates a centralized market place under the name Crypto.com |Derivatives North America where Members can trade certain derivative instruments with eachother.
“Officer” has the meaning set forth in Rule 2.3.
“Opening Trade Value” means the rate, level, amount, measure, or other value of a Binary,Call Spread, or Touch Bracket at which the Contract is opened in a Member’s or Customer’s
account.
“Order” means a request submitted to the Exchange to buy or sell a set number ofcontracts, in a particular product offered by Nadex in accordance with the requirements
established by the Exchange.
“Participant” means a Trading Member, FCM Member, an ISV, any Authorized Trader, or
any Person initiating or executing a transaction on or subject to the Rules of the Exchange directlyor through an intermediary, or any person who is authorized to access or utilize the Nadex
Exchange pursuant to the applicable User ID.

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“Payout Criterion” of a Contract means the Expiration Value or range of Expiration Values
that will cause that Contract to pay a Settlement Value to the holder of a long position or theholder of a short position in such Contract. The holder of a long or short position in a Contractthat receives a Settlement Value is considered to be “in-the-money” while the holder of either along or short position in a Contract that does NOT receive a Settlement Value is considered to be“out-of-the-money”.
“Person” means an individual, sole proprietorship, corporation, limited liability company,
partnership, trust, or any other entity, as the context may require.
“Post-Only Quote” is a quote submitted by a Market Maker, which has the potential to
become a Limit Order if matched for trade execution, and which cannot be executed opposite
another Post-Only Quote. Post-Only Quotes are either Post-Only (Price Adjustment) or Post-Only(Reject) Quotes.
“Post-Only (Price Adjustment) Quote” is a Post-Only Quote that will be cancelled by the
Exchange in whole or in part to the extent that at the time it is submitted to the Exchange it would
be immediately executable opposite another Post-Only Quote. If, some portion of such submitted
Post-Only (Price Adjustment) Quote would be immediately executable opposite any resting NonPost Only Order(s), that part of such submitted Post-Only (Price Adjustment) Quote will bematched opposite such resting Non-Post Only Order(s) by the Exchange. The remaining portionof the submitted Post-Only (Price Adjustment) Quote will be cancelled by the Exchange, leaving
the opposite Post-Only Quote in the order book. Unlike a Post-Only (Reject) Quote, however, uponcancellation of the submitted Post-Only (Price Adjustment) Quote, the Exchange willautomatically submit an amended quotation for the unfilled balance of the cancelled Post-Only(Price Adjustment) Quote at a price level that is adjusted (a) for Binary Contracts to four minimum
tick increments, and (b) for Variable Payout Contracts to one minimum tick increment lower (forbids) or higher (for offers) than the price level of the existing opposite Post-Only Quote.
“Post-Only (Reject) Quote” is a Post-Only Quote that will be cancelled by the Exchange inwhole or in part to the extent that, at the time it is submitted to the Exchange it would be
immediately executable opposite another Post-Only Quote. If, however, some portion of such
submitted Post-Only (Reject) Quote would be immediately executable opposite any resting NonPost Only Order(s), that part of such submitted Post-Only (Reject) Quote will be matched opposite
such resting Non-Post Only Order(s) by the Exchange. The remaining portion of the submitted
Post-Only (Reject) Quote will be cancelled by the Exchange, leaving the opposite Post-Only Quotein the order book.
“Privacy Policy” is the Nadex Privacy Policy as set forth on the Nadex website, to which
all Members, FCM customers, and users of the Nadex website agree to comply.
“Regulatory Agency” means any government body, including the Commission and
Securities and Exchange Commission, and any organization, whether domestic or foreign,
granted authority under statutory or regulatory provisions to regulate its own activities and the14

activities of its members, and includes Nadex, any other clearing organization or contract market,
any national securities exchange or clearing agency, the National Futures Association (“NFA”)
and the Financial Industry Regulatory Authority (“FINRA”).
“Reportable Level(s)” means the aggregate contract level within a product Class at which
the Exchange must report certain Member and trade information to the Commission pursuant toCommission Regulations.
“Risk Disclosure Statement” is the Nadex Risk Disclosure Statement as set forth on the
Nadex website, to which all Nadex Members agree.
“Rule” means a Rule of Nadex, as applicable to each member type.
“Self-Regulatory Organization” shall mean any futures or securities exchange, derivatives
clearing organization, securities clearing agency, registered futures association, National Futures
Association, and the Financial Industry Regulatory Authority.
“Series” means all Contracts of the same Class having identical terms, including Payout
Criterion and Expiration Date.
“Settlement Date” means the date on which money is paid to the account of a Member
who has the right to receive money pursuant to a Variable Payout Contract or Binary Contract
held until Expiration, and on which money is paid from the account of a Member who is obligatedto pay money pursuant to a Variable Payout Contract held until Expiration. Unless otherwise
specified in these Rules, the Settlement Date is the same day as the Expiration Date.
“Settlement Value” means the amount which the holder of a Contract may receive for aContract held until Expiration. The Settlement Value of a Binary Contract is $100. The Settlement
Value of a Variable Payout Contract is determined as described in the definitions of Long andShort Variable Payout Contracts.
“Short Variable Payout Contract” means (i) if the Expiration Value is less than the Opening
Trade Value, but does not exceed the Floor, the right to receive any collateral posted to establish
the position plus any positive number resulting from subtracting the Expiration Value from theOpening Trade Value, and then multiplying that resulting number by the Dollar Multiplier; or (ii) if
the Expiration Value is less than the Opening Trade Value and exceeds the Floor, the right toreceive any collateral posted to establish the position plus any positive number resulting fromsubtracting the Floor from the Opening Trade Value, and then multiplying that resulting number
by the Dollar Multiplier; or (iii) if the Expiration Value is greater than the Opening Trade Value, butdoes not exceed the Ceiling, the right to receive any collateral posted to establish the position
minus any positive number resulting from subtracting the Opening Trade Value from the
Expiration Value, and then multiplying that resulting number by the Dollar Multiplier; or (iv) if the
Expiration Value is greater than the Opening Trade Value and exceeds the Ceiling, the right toreceive any collateral posted to establish the position minus any positive number resulting from15

subtracting the Opening Trade Value from the Ceiling, and then multiplying that resulting number
by the Dollar Multiplier.
“Source Agency” means the agency that publishes the Underlying economic indicator
and/or Expiration Value for any Contract.
“Speculative Position Limits,” or “Position Limit” means the maximum position, net longand net short combined, in one Series or a combination of various Series of a particular Class
that may be held or controlled by one Member as prescribed by Nadex and/or the Commission.
“Start Date” means the date on which a new delivery month will be used as the Underlying
for Nadex contracts.
“Suspension Event” means an event as described in the Market Maker Agreement.
“Terms of Use” are the Nadex Terms of Use as set forth on the Nadex website, to which
all Nadex Members, FCM customers, and users of the Nadex website agree to comply.
“Tolerance Protection” means the defined number of points, expressed in terms of adollar amount, away from the displayed market price that will be acceptable to fill a Market OrderWith Protection in whole or part, if the displayed market price or a better price is no longer
available when the Exchange receives the Order.
“Touch Bracket Contract”1 is a type of Variable Payout Contract, having a conditional
Expiration Date on the Last Trade Date established at the time of listing, but which Touch Bracket
will expire prior to that stated Expiration in the event that, during the life of the Contract, the Index
Value either (i) equals or is less than the Floor or (ii) equals or is greater than the Ceiling of the
Touch Bracket.
“Trade Day” means the regular trading session on any given calendar date and the evening
session, if any, on the immediately preceding calendar date, as specified in Rule 5.11.
“Trading Member” means a Person who has been approved by Nadex to trade directly
and not through a FCM Member on the Market, and does not include any FCM Member.
“Type” means the classification of a Contract as a Variable Payout Contract or a Binary
Contract.
“US Financial Institution” means a financial institution as that term is defined in 31
CFR 1010.100(t), subsections (1), (2), and (8), that is required to comply with the regulations
1 Nadex may also refer to its Touch Bracket Contracts as “Knock-out Touch Bracket Contracts” “UpDown Touch Bracket

Contracts” “Knock-outs,” or “UpDowns,” or “UpDown Options” from time to time. “US Financial Institution” means afinancial institution as that term is defined in 31 CFR 1010.100(t), subsections (1), (2), and (8), that is required to comply
with the regulations issued by the United States Department of Treasury under the Bank Secrecy Act including, but notlimited to, the anti- money laundering program and customer identification program rules.

16

issued by the United States Department of Treasury under the Bank Secrecy Act including, but
not limited to, the anti- money laundering program and customer identification program rules.
“Underlying” means the index, rate, risk, measure, instrument, differential, indicator, value,
contingency, occurrence, or extent of an occurrence the Expiration Value of which determines
whether (and, in the case of a Variable Payout Contract, to what extent) a Contract is in-themoney.
“Variable Payout Contract” means a category of contracts wherein the holder of a Long
Variable Payout Contract or a Short Variable Payout Contract may have a right to a variable
Settlement Value. Variable Payout Contracts include Call Spread Contracts and Touch Bracket
Contracts.
“Volume Threshold Level” means the volume based Reportable Level as established byCommission Regulation 15.04.
“Wide Spread Surcharge” means an additional exchange fee imposed on a duly appointed
Market Maker’s average per lot profit above a specified level, in a given month. Specific details
pertaining to the Wide Spread Surcharge are set forth in the fee schedule on the Nadex website.
“12PM” or “12:00 PM” means 12:00 Noon.
INTERPRETATIONIn these Rules, unless the context clearly requires otherwise, (a) words in the singular include theplural and words in the plural include the singular, (b) any gender includes each other gender, (c)references to statutory provisions include those provisions, and any rules or regulations
promulgated thereunder, as amended, and (d) all uses of the word “including” should beconstrued to mean “including, but not limited to.” Headings included herein are for convenience
purposes only and do not form a part of these Rules.
DATE AND TIME REFERENCES
Unless otherwise specified, all references to dates, times or time periods shall refer to, or bemeasured in the Eastern Time zone.
CONFLICTS
In the event of a conflict between any Rules of general application and the Rules relating toparticular types of transactions, the transaction-specific Rules will prevail.

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17

MARKET GOVERNANCE
POWERS OF NADEX’S BOARD OF DIRECTORSThe board of directors of Nadex has the power to manage and direct Nadex including but notlimited to the power to define the standards for membership in the Exchange and who may
access the secure portions of Nadex’s website, the power to amend, adopt, or repeal these Rules,
and the power to oversee the business conduct of Members and impose penalties for violationof these Rules.
RESTRICTIONS ON WHO MAY BE MEMBERS OF THE BOARD, MEMBERS OFDISCIPLINARY COMMITTEES, MEMBERS OF ARBITRATION OR OVERSIGHT
PANELS, OR TEN PERCENT OR GREATER OWNERS
Commission Regulation 1.63 prohibits certain individuals who have been charged with, or havebeen found to have committed, disciplinary offenses (as defined in that section) within the past
three years from serving. No individual subject to disqualification under Commission Regulation
1.63(b) may serve on the Nadex Board of Directors, any of its Disciplinary Committees (including
serving as compliance officer or hearing officer), Appeals Panel, or any other Oversight or
Arbitration Panel, each as defined in Commission Regulation 1.63, as may be created (collectively,“Panels”). Additionally, any individual who may be denied registration, or whose registration may
be suspended, restricted or conditioned by the CFTC for any reason in accordance with section
8a(2) of the CEA, to the best of Nadex’s knowledge and belief after reasonable inquiry, may notserve on the Nadex Board of Directors, nor any of its Disciplinary Committees or Panels (including
serving as compliance officer or hearing officer). Nadex will not permit any individual subject todisqualification under Commission Regulation 1.63(b) to own 10% or more of Nadex or to serve
as a Nadex hearing officer.
OFFICERS OF NADEX(a)

Nadex has a board of directors, consisting of no fewer than five (5) and no morethan seven (7) directors elected by a majority vote of all shareholders of Nadex.
Each director serves a one year term. Each director, including a director elected tofill a vacancy, shall hold office until his successor is elected and qualified or until
his earlier resignation or removal.

(b)

Nadex has a chief executive officer, secretary, chief financial officer, chief
regulatory officer, chief compliance officer, and other such officers from time totime as appointed by the board of directors or the shareholders (collectively, the“Management Team”). These officers are appointed and may be dismissed (withor without cause) by majority vote of the board of directors or the shareholders.

(c)

The chief executive officer of Nadex must be a member of the board of directors.
In the absence of the chairman, the chief executive officer will perform the18chairman’s duties. In the event of a disagreement between the chief executive
officer and the board or the chairman of the board as to an exchange matter, thechairman and/or board shall control.
(d)Subject to the direction of the board of directors, the chief executive officer will
manage the overall business of the exchange. In the absence of the chief executive
officer, the executive officer in charge of operations will perform the chief
executive officer’s duties.

(e)

The chief financial officer of Nadex will be responsible for all funds and stock ofNadex and in general perform all duties incident to the office of chief financial
officer and such other duties as from time to time may be assigned by the chief
executive officer or the board of directors. If the function of the office of the chief
financial officer is outsourced to a service provider, the chief executive officer shallbe responsible for oversight of this function.

(f)

The secretary of Nadex will keep the minutes of the meetings of the board and ingeneral perform all duties incident to the office of secretary and such other duties
as from time to time may be assigned by the chief executive officer or the boardof directors.

(g)

The chief regulatory officer of Nadex will be responsible for managing the day-today regulatory functions of the Exchange consistent with the Acceptable Practices
for Designated Contract Markets under Core Principle 16 of Section 5(d) of the
CEA.

(h)

The chief compliance officer of Nadex will be responsible for fulfilling theobligations of a chief compliance officer of Derivatives Clearing Organizations
under the CEA and Commission regulations, to the extent such obligations apply
to Nadex. The chief compliance officer will report to the chief executive officer orsuch other person or entity as directed by the board of directors.
EMERGENCY RULES(a)

Nadex may adopt emergency Rules in response to the emergencies that aredescribed in paragraph (c) of this Rule. In the event of one of those emergencies,
the board of directors or at least two members of the Management Team may,without giving prior notice to, or securing prior approval from, the Commission,
adopt a temporary emergency rule to address the emergency. Adoption of atemporary emergency rule by the board of directors requires the affirmative voteof two-thirds of the members of the board at a meeting of the board at which aquorum is present. Nadex may count a member of the board of directors who
abstains from voting on a temporary emergency rule to determine whether aquorum exists. Adoption of a temporary emergency rule by the management team19

requires the written authorization and acknowledgement of two members of the
management team, indicating the emergency action to be taken and the reasonsfor that action, before the action is taken.
(b)

Any temporary emergency rule adopted under this Rule may authorize Nadex toact as the board of directors or management team deems necessary or
appropriate to meet the emergency, and those actions may adversely affect theability to trade on the Market. Therefore, the chance of an emergency is one of therisks that market participants should consider when deciding whether to trade on
the Market.

(c)

For the purposes of this Rule, an “emergency” is:(i)any activity that manipulates or attempts to manipulate the Market;(ii)

any actual, attempted, or threatened corner, squeeze, or undue
concentration of positions;(iii)

any circumstance that may materially affect the performance of theContracts traded on Nadex, including failure of the payment system orbankruptcy or insolvency of any participants;(iv)

any action taken by the United States, any foreign government, any state or
local governmental body, any other contract market or board of trade, or
any other exchange, market, facility, or trade association (foreign ordomestic) that may have a direct impact on trading on Nadex;(v)

any circumstances that may have a severe, adverse impact upon thephysical functions of Nadex including, for example, natural disasters suchas fire or flood, terrorist acts such as bomb threats, physical plant
breakdowns such as plumbing, heating, or air conditioning problems,
system breakdowns such as power, telephony, cable, trading systems, orcomputer systems failures or interruptions to communications, thenetwork, or the Internet;(vi)

the imposition of any injunction or other restraint by any government
agency, court, or arbitrator that may affect the ability of a Member toperform on Contracts;(vii)

any circumstance in which it appears that a Nadex Member or any otherperson is in such operational condition, or is conducting business in sucha manner, that such person cannot be permitted to continue in businesswithout jeopardizing the safety of Nadex Members or Nadex itself; and20

(viii)any other unusual, unforeseeable, and adverse circumstance which, in theopinion of the governing board, requires immediate action and threatens
or may threaten such things as the fair and orderly trading in, or theliquidation of or delivery pursuant to Contracts traded on Nadex.

(d)

If deemed necessary to combat perceived market threats caused by anemergency, a Nadex official authorized to do so may suspend trading on theMarket during the duration of the emergency or take any other action that theofficial thinks is necessary or appropriate. The official will order an end to theaction taken in response to the emergency as soon as the official determines thatthe emergency has sufficiently abated to permit the Market to function properly.

(e)Nadex will make every effort practicable to notify the Director of the Division ofMarket Oversight, his delegates, and/or other persons designated by theCommission’s Regulations that Nadex intends to implement, modify, or terminate
a temporary emergency rule pursuant to Rule 2.4(a) or an action in response to an
emergency pursuant to Rule 2.4(d) prior to the implementation, modification, or
termination of the rule or action. If it is not possible to notify the Commission prior
to the implementation, modification, or termination of the rule or action, Nadex will
notify the Commission of the implementation, modification, or termination of therule or action at the earliest possible time, and in no event more than 24 hours after
implementation, modification, or termination.

(f)

Any time that Nadex takes action in response to an emergency, either under Rule2.4(a) or Rule 2.4(d), Nadex will document its decision-making process andreasons for taking emergency action.
COMMITTEES AND SUBCOMMITTEES(a)The Nadex board of directors may create, appoint members of the board to serveon, and delegate powers to, committees and subcommittees.

(b)

A majority of any committee or subcommittee will constitute a quorum, and amajority of a quorum is necessary for committee or subcommittee action. A
committee or subcommittee may act by unanimous consent in writing, including
by electronic mail, without a meeting.

(c)Nadex’s board of directors shall appoint a Regulatory Oversight Committee
comprised of board members who are “public directors” as defined in the
Acceptable Practices under Core Principle 16 in Commission Regulation Part 38,
Appendix B. The ROC shall oversee Nadex’s regulatory program on behalf of theboard. The board shall delegate sufficient authority, dedicate sufficient resources,
and allow sufficient time for the ROC to fulfill its mandate. The ROC shall:

21

(i)

Monitor Nadex’s regulatory program for sufficiency, effectiveness, andindependence;(ii)

Oversee all facets of the program, including trade practice and market
surveillance; audits, examinations, and other regulatory responsibilities
with respect to member firms (including ensuring compliance withfinancial integrity, financial reporting, sales practice, recordkeeping, andother requirements); and the conduct of investigations;(iii)

Review the size and allocation of the regulatory budget and resources; andthe number, hiring and termination, and compensation of regulatory
personnel;(iv)

Supervise Nadex’s chief regulatory officer, who will report directly to the
ROC;

(v)

Prepare an annual report assessing Nadex’s self-regulatory program forthe board of directors and the Commission, which sets forth the regulatory
program’s expenses, describes its staffing and structure, catalogs
disciplinary actions taken during the year, and reviews the performance ofdisciplinary committees and panels; and(vi)

Recommend changes that would ensure fair, vigorous, and effective
regulation;(vii)

Review significant regulatory proposals and advise the board as to whether
and how such changes may impact regulation.

VOTING BY INTERESTED BOARD MEMBERS
Core Principle 16 of Section 5(d) of the CEA requires that contract markets have adequate
procedures to prevent conflicts of interest. In this regard, Nadex has adopted provisions ofCommission Regulation 1.69 as a Rule of Nadex. Commission Regulation 1.69 prohibits amember of the Nadex board of directors or any disciplinary or oversight committee orsubcommittee from taking part in any deliberations or voting on any matter in which the board,committee, or subcommittee member has an interest or has a relationship with a named party ininterest. Regulation 1.69 also requires disclosure by board, committee, or subcommittee
members of interests and relationships in certain circumstances. Nadex board, committee, andsubcommittee members shall not deliberate or vote on any matter in which the board, committee,
or subcommittee member has an interest or has a relationship with a named party in interest andshall disclose such interests in accordance with Regulation 1.69. See also Chapter 11 of theseRules.

22

INDEMNIFICATION OF DIRECTORS, OFFICERS, AND OTHERS
Nadex will indemnify to the full extent authorized by law any person who was or is a party or isthreatened to be made a party to any threatened, pending, or completed action, suit, or
proceeding, whether civil, criminal, administrative, or investigative in nature, by reason of the factthat such person is or was a director, officer, employee, or agent of Nadex or is or was serving at
the request of Nadex as a director, officer, employee, or agent of Nadex against expenses,
including attorneys’ fees, judgments, fines, and amounts paid in connection with such action, suit,or proceeding. Such indemnification shall not be deemed exclusive of any other rights to which aperson may be entitled under any agreement or as a matter of law or otherwise. Nadex maypurchase and maintain insurance on behalf of any person who is or was a director, officer,
employee, or agent of Nadex against any liability asserted against such person and incurred bysuch person in any such capacity, or arising out of such person’s status as such, whether or not
Nadex would have the power to indemnify such person against such liability under the provisionsof this Rule. However, no person shall be indemnified from liability for fraud, bad faith, willful
misconduct, or gross negligence. Further, no person shall be indemnified against a civil penalty
imposed by the Commission under Section 6b of the CEA.
PROHIBITION ON USE OF MATERIAL, NON-PUBLIC INFORMATION(a)Commission Regulation 1.59 prohibits employees and members of the board of
directors of Nadex from using or disclosing material, nonpublic information gained
through their employment or board service in certain circumstances. This Rule
prohibits the use and disclosure forbidden by Commission Regulation 1.59. In thisregard, Nadex has adopted provisions of Regulation 1.59 as a Rule of Nadex in
Chapter 11 of these Rules.

(b)

No member of the board of directors or any committee established by the boardof directors or these Rules will use or disclose material, nonpublic information
obtained as a result of participation on the board of directors or such committee
for any purpose other than the performance of official duties as a board orcommittee member.

(c)

No employee, consultant, or member of the board of directors or any committeeof Nadex will disclose to any other person material, nonpublic information
obtained as a result of such person’s employment for purposes inconsistent withsuch person’s official duties.

(d)No employee, consultant, or member of the board of directors or any committeeof Nadex will trade for such person’s account, or for or on behalf of any otheraccount, in any commodity interest on the basis of any material, non-public
information obtained through special access related to the performance of such
person’s duties as an employee, consultant, or member of the board of directors
or committee.
23

(e)

No Member who inadvertently or otherwise comes into possession of any
material, non-public information held by Nadex or any employee, consultant, or
member of the board of directors or any committee of Nadex gained through theiremployment by or service to Nadex will disclose to anyone such material, nonpublic information or trade for such person’s account, or for or on behalf of any
other account, in any commodity interest on the basis of such material, nonpublic
information.

(f)

For purposes of this Rule, the terms “material information,” “nonpublic
information,” “linked exchange”, “commodity interest,” and “related commodity
interest” have the same meanings as they do in Commission Regulation 1.59.

(g)

Any director, officer, or employee of Nadex who violates any provision of this Rule
will be required to indemnify Nadex for any losses, damages, or costs caused bythat violation.
LIMITATION ON TRADING BY AFFILIATESA Market Maker that is an Affiliate of Nadex may trade on Nadex provided that it is fully authorized
pursuant to a Market Maker Agreement and that it has implemented the appropriate policies andprocedures related to conflicts of interest, including that no Employee of a Market Maker that is
an affiliate may trade on any Nadex Market for such employee’s own account. An Affiliate ofNadex that is properly registered as a Futures Commission Merchant is permitted to become an
FCM Member of the Exchange and act as an intermediary for its customers on the Exchange,
provided that such FCM is duly authorized pursuant to an FCM Membership Agreement and thatit has implemented the appropriate policies and procedures related to conflicts of interest,
including that no Employee of the FCM that is an Affiliate may trade on any Nadex Market forsuch employee’s own account. All Market Makers that are Affiliates of Nadex and all FCM
Members that are Affiliate of Nadex shall provide the applicable policies and procedures related
to conflicts of interest, and any updates thereto, to the Exchange upon request.
Exchange jurisdiction over the Person, as well as the Person’s agreement to be bound by the
Nadex Rules and obligation of cooperation and participation in investigatory and disciplinary
processes, shall continue beyond the revocation or termination of the Person’s trading privileges
with respect to any transactional or Rule- related matter involving the Person, occurring before
the revocation or termination of trading privileges, regardless of whether the matter was
discovered prior to or after the revocation or termination of the Person’s trading privileges.
CONSENT TO JURISDICTION
Any Participant, Person initiating or executing a transaction on or subject to the Rules of the
Exchange directly or through an intermediary, and any Person for whose benefit such atransaction has been initiated or executed, expressly consents to the jurisdiction of the Exchange
and agrees to be bound by and comply with the Rules of the Exchange in relation to such24transactions, including, but not limited to, rules requiring cooperation and participation in
investigatory and disciplinary processes. Any futures commission merchant, introducing broker,
associated person, independent software vendor or foreign Person performing a similar role, thatcharges a commission or fee in connection with transactions on or subject to the Rules of the
Exchange also expressly consent to the Exchange’s jurisdiction. The consent to jurisdiction under
this Rule shall continue notwithstanding a termination of any Person’s membership.
For the avoidance of doubt, any Participant that trades any digital asset or cryptocurrency on a
U.S. or non-U.S. spot market, agrees to cooperate and provide documents, transactional
information and any other information requested by the Exchange related to such Participant’s
trading of digital assets or cryptocurrencies within two (2) business days of such request. Suchcooperation includes, but is not limited to authorizing the Exchange to contact the relevant spot
market(s) and obtain any information related to such Participant’s trading of digital assets or
cryptocurrencies.

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25

MEMBERS
TRADING MEMBERS – APPLICATIONS, CLASSIFICATIONS, AND PRIVILEGES(a)

To be eligible to become a Trading Member:(i)

An applicant who is an individual, must:(1)

provide Nadex with any information or documentation Nadex
deems necessary in order to verify the applicant’s identity, performa criminal background check, or otherwise review information
provided on an Application for Membership or by a third party
provider2;(2)A.
have an account(s) in the Trading Member’s name with a US
Financial Institution that the Trading Member will use to fund its
Nadex account at the Nadex settlement bank, and to receive funds
from its Nadex account, or,B.

have a verified account(s) at a Financial Institution or
Foreign Bank (or other similarly authorized institution thathas been vetted by Nadex and received pre-approved
written authorization from Nadex that it is an acceptablemeans of deposit) held in the Trading Member’s name that
the Trading Member will authorize per transaction todeposit funds to the Trading Member’s Nadex account at
the Nadex settlement bank by means of a registered money
services business.; orC.

have an account(s) as described in subsections (A) or (B) oran account(s) in the Trading Member’s name with a Foreign
Bank capable of transacting with Nadex’s settlement bankeither directly, through a Correspondent Account, or otheracceptable intermediary that the Trading Member will use
to fund its Nadex account at the Nadex settlement bank,and to receive funds from its Nadex account via one of theacceptable methods as stated on the Nadex website3; and2 Required documentation may vary depending on the applicant’s residential location. Specific residential locations

from which Nadex may accept applications for Membership will be identified on the Nadex Membership application.
3 All funds deposited into the Trading Member’s Nadex account at the Nadex settlement bank shall be in any of thefollowing currency denominations: U.S. dollars, British Pounds or Euro Currency. All withdrawal payments from the
Trading Member’s Nadex account will also be made in any of the following currency denominations: U.S. dollars, British
Pounds or Euro Currency.

26

(3)

(ii)

certify thatA.

the applicant is old enough to enter into a legally
enforceable contract and has reached the required age asstated on the Membership Agreement;B.

the applicant has read, understands and agrees to comply
with the Nadex Rules, Risk Disclosure Statement, Terms ofUse, Privacy Policy, and Membership Agreement;C.

the applicant agrees to be bound by these Rules; andD.

the applicant will trade only for itself and will not trade as anintermediary for any other person or entity.

An applicant that is an Entity must(1)

be organized in the United States;(2)

provide Nadex with a valid Taxpayer Identification Number;(3)

provide Nadex with a valid legal entity identifier as described inCommission Regulation §45.6;(4)

have an account or accounts in the Entity Trading Member’s namewith a Financial Institution that the Entity Trading Member will use
to fund its Nadex account at the Nadex settlement bank, and toreceive funds from its Nadex account, via one of the acceptable
methods as stated on the Nadex website; and(5)

designate Authorized Trader(s) to trade its account and agree thatsuch Authorized Trader(s) will trade only for it and will not trade forhim/herself or as an intermediary for any other entity or person;(6)

designate at least one officer who is responsible for supervising all
activities of its employees relating to transactions effected on
Nadex or subject to Nadex Rules and provide any information
Nadex may request regarding such officer(s);(7)

agree to be bound by these Rules; and(8)certify thatA.

the applicant is validly organized, in good standing, in the
United States;27

B.

the applicant is authorized by its governing body and, if
relevant, documents of organization, to trade commodities,
swaps, futures and options contracts, andC.

the applicant has read, understands and agrees to comply
with the Nadex Rules, Risk Disclosure Statement, Terms ofUse, Privacy Policy, and Membership Agreement.

(b)

In order to become a Trading Member, an applicant who is an individual mustcomplete and submit the Nadex on-line membership application, provide Nadex
with any other information Nadex may request, and fund its Nadex account bymaking a deposit of funds belonging to the individual applicant from the individual
applicant’s account at a US Financial Institution, or as otherwise provided for insubsection (a)(i)(2) of this Rule, to the appropriate segregated Cleared Swap
Proprietary Account at Nadex’s settlement bank. An applicant who is an Entity
must complete an Account Certification, Membership Agreement, and W-9, whichcollectively shall constitute the membership application, provide Nadex with anyother information Nadex may request, and fund its Nadex account by making adeposit of funds belonging to the entity applicant from the entity applicant’s
account at a Financial Institution to the appropriate segregated Cleared Swap
Proprietary Account at Nadex’s settlement bank. All funds deposited by Trading
Members shall constitute “Member Property” in accordance with CFTC
Regulations.

(c)Submission of a membership application to Nadex constitutes the applicant’s
agreement to be bound by these Rules and other policies of Nadex.

(d)

If an application is approved by Nadex and the Nadex settlement bank confirms to
Nadex that the applicant has made a successful initial deposit in accordance withparagraph (b) of this Rule, the applicant will be a Trading Member of Nadex andwill have the following privileges, which Nadex may revoke, amend, or expand inaccordance with, or by amending, these Rules:(i)to maintain a Nadex account;(ii)

to buy Contracts on the Market using the funds in its Nadex account;(iii)

to sell Contracts on the Market using the funds in its Nadex account;(iv)

to view “real-time” the same best bids to buy and offers to sell theContracts traded on the Market as are available to all other Members;(v)

to view the current trading volume and open interest for the Contracts
traded on the Market; and
28

(vi)

(e)

to view all non-secure parts of the Nadex website, including these Rules,and descriptions of Contracts traded on the Market as well as all secureparts of the Nadex website outlined above in Rule 3.1(d)(i) – (vi).

Nadex may in its sole discretion approve, deny, or condition any Member
application as Nadex deems necessary or appropriate. (f) A Trading Memberthat is an individual, may not maintain and/or trade more than one Nadex account.
No Authorized Trader(s), nor any officer, director, member, manager, owner, or
indirect owner, of an Entity Trading Member may maintain a separate Nadex
account and/or trade any Nadex account other than that Entity’s account.
FCM MEMBERS – APPLICATIONS, CLASSIFICATIONS, AND PRIVILEGES

(a)

(b)

To be eligible to become a FCM Member, an applicant must:(i)be validly organized, in good standing, in the United States;(ii)

be registered as a Futures Commission Merchant by the National Futures
Association;(iii)

have adequate financial resources and credit as determined by Nadex;(iv)

have an account or accounts with a Financial Institution designated as asettlement bank by Nadex;(v)

designated at least one officer who is responsible for supervising all
activities of its employees relating to transactions effected on the Nadex
or subject to Nadex Rules and provide any information Nadex may request
regarding such FCM Member;(vi)

submit to Nadex a letter confirming that the applicant will maintain all
Customer funds deposited with it in connection with trading any Nadex
Contracts in appropriately labeled and segregated Cleared Swaps
Customer Accounts separated from funds of both the FCM Member andfutures customers, as required by Commission regulations;(vii)

agree to be bound by these Rules; and(viii)

meet any other criteria or complete any additional applications that Nadex
may request.

Prior to becoming a FCM Member, FCM Member applicants must submit to Nadex:

29

(i)

a guarantee agreement on a form prescribed by Nadex defining the FCM
Member’s obligation to guarantee the applicant’s transactions and thoseof the applicant’s Customers, signed by the FCM Member; and(ii)

an agreement authorizing Nadex to unilaterally debit any accounts
identified per Rule 3.2(a)(iv) in accordance with Nadex’s rules, policies andprocedures and in amounts solely determined by Nadex.

(c)Nadex may in its sole discretion approve, deny, or condition any FCM Member
application as Nadex deems necessary or appropriate.

(d)

If an FCM Member application is approved by Nadex, the applicant will be a FCM
Member of Nadex and will have the following privileges:(i)to intermediate Customer transactions on Nadex;(ii)

to distribute Nadex data to its Customers pursuant to any data distributionagreement with Nadex; and(iii)

to access Nadex’s trading systems electronically via a FIX connection(Internet – SSL only).

MEMBER OBLIGATIONS(a)Each Member and any Authorized Trader(s) thereof, must comply with theseRules, applicable provisions of the Commodity Exchange Act, and relevantCommission regulations. Each Member and any Authorized Trader(s) thereof
must also cooperate promptly and fully with Nadex, its agents, and/or theCommission in any investigation, call for information, inquiry, audit, examination,or proceeding. Such cooperation shall include providing Nadex with access to
information on the activities of such Member and/or Authorized Trader in any
referenced market that provides the underlying prices for any Nadex market. For
the avoidance of doubt, any Participant that trades any digital asset or
cryptocurrency on a U.S. or non-U.S. spot market, agrees to cooperate and provide
documents, transactional information and any other information requested by the
Exchange related to such Participant’s trading of digital assets or cryptocurrencies
within two (2) business days of such request. Such cooperation includes, but is
not limited to authorizing the Exchange to contact the relevant spot market(s) andobtain any information related to such Participant’s trading of digital assets or
cryptocurrencies.
Additionally, each Member must update its e-mail address within 24 hours after
any change and update all other information provided in its application formembership within five days after that information has changed.
30

If any Member or Authorized Trader(s) thereof fail to satisfy these obligations,
Nadex may revoke or suspend the Member’s privileges in full or in part. Each
Member may also be subject to civil or criminal prosecution.
(b)

Each Member consents to allow Nadex to provide all information Nadex has about
the Member, including the Member’s trading activity, to the Commission or any
other Regulatory Agency, law enforcement authority, or judicial tribunal, including(as may be required by information sharing agreements or other contractual,
regulatory, or legal provisions) foreign regulatory or self-regulatory bodies, law
enforcement authorities, or judicial tribunals.

(c)Each Member and each Member’s Authorized Trader(s) are required to review the“Notices” section of the Nadex website to make itself aware of material changes
to these Rules or other notices that may affect your rights and obligations as a
Member of Nadex.

(d)Each Member must immediately notify Nadex in writing upon becoming aware:(i)that the Member, any of the Member’s officers or any of the Member’s
Authorized Traders has had access or trading privileges suspended, or
membership denied, in any commodity, securities, or swaps exchange,
brokerage, association, or Regulatory Agency;(ii)

that the Member, any of the Member’s officers or any of the Member’s
Authorized Traders has been convicted of, pled guilty or no contest to, or
entered a plea agreement to, any felony in any domestic, foreign or military
court;(iii)

that the Member, any of the Member’s officers or any of the Member’s
Authorized Traders has been convicted of, plead guilty or no contest to, or
entered a plea agreement to a misdemeanor in any domestic, foreign or
military court which involves:

(iv)

(1)

embezzlement, theft, extortion, fraud, fraudulent conversion,forgery, tax evasion, counterfeiting, false pretenses, bribery,gambling, racketeering, or misappropriation of funds, securities orproperties; or(2)

any transaction in or advice concerning swaps, futures, options on
futures, leveraged transactions or securities;

that the Member, any of the Member’s officers or any of the Member’s
Authorized Traders has been subject to, or associated with a firm that was

31subject to regulatory proceedings before any governmental or Regulatory
Agency;(v)that the Member, any of the Member’s officers or any of the Member’s
Authorized Traders is currently a party to any investigation or proceeding,
the resolution of which could result in an event described in Rule 3.3(d)(i)(iv);(vi)

of any other material change in any information contained in the Member’s
membership application;(vii)of any failure to segregate or maintain adequate Customer funds as
required by the Commission when the Member is a FCM Member;(viii)of becoming subject to early warning reporting under Commission
Regulation 1.12;(ix)

of becoming the subject of a bankruptcy petition, receivership proceeding,or the equivalent, or being unable to meet any financial obligation as it
becomes due; or(x)of information that concerns any financial or business developments that
may materially affect the Members’ ability to continue to comply withparticipation requirements.

(e)Each Member must diligently supervise all activities of the Member’s employees
and/or agents, including all Authorized Traders, relating to transactions effectedon Nadex. Any violation of these Rules by any employee of a Member may
constitute a violation of the Rules by such Member.

(f)

A Member is not required to engage in trading activity or maintain a minimum
balance in its account after initial funding. If a Member does not engage in any
trading activity or maintain a positive balance for a period of one year, however,that Member’s account and membership may be terminated. A Person whose
membership is terminated pursuant to this provision may re-apply for membershipat any time following such termination.
FCM MEMBER OBLIGATIONSIn addition to the obligations applicable to all Members, FCM Members shall have the following
obligations:(a)Each FCM Member must at all times maintain the financial resources at or inexcess of the amount prescribed by Nadex from time to time as a FCM Memberof Nadex. FCM Members may maintain two settlement accounts at Nadex. One
32

settlement account will contain cleared swaps customer collateral and will be held
separately from the members’ property and from the funds of such FCM Member
held for futures trading (“Cleared Swaps Customer Account”), while the othersettlement account will hold Member Property of the FCM Member (“Cleared
Swaps Proprietary Account”).
(i)

As futures commission merchants, all FCM Members must comply withthe financial and reporting requirements set forth by the Commission and
the National Futures Association, including the requirements contained inCommission Regulations 1.10 and 1.17.

(ii)

Cleared Swaps Customer Account

(iii)

(1)

The Cleared Swaps Customer Account will contain separate
position accounts for each FCM Member Customer.

(2)

Each FCM Member shall be required to make an initial deposit of atleast $100,000 of funds constituting the FCM’s residual interest
therein, into its FCM Member Cleared Swaps Customer Account forexcess collateral with Nadex.

(3)

If the available balance of the FCM Member’s residual interest in
the Cleared Swaps Customer Account falls below $50,000, the FCM
Member must promptly deposit additional funds into the accountto increase the available balance of such residual interest to at least$100,000.

(4)FCM Member cannot withdraw funds from its residual interest in
the Cleared Swaps Customer Account if, after such withdrawal, theavailable residual interest balance would be less than $100,000
except on termination of Membership.

Cleared Swaps Proprietary Account(1)

The Cleared Swaps Proprietary Account will contain separate
position accounts for any error accounts and test accounts of the
FCM Member and/or any personal trading accounts ofAPs/employees. For the purposes of this Rule 3.4,
“APs/employees” includes all associated persons (“APs”) andemployees of the FCM Member, as well as those of the FCM
Member’s guaranteed introducing brokers (“GIBs”).

(2)

Except as set forth herein, a FCM Member shall treat an account ofan AP/employee like an account of a FCM Member Customer. An
33

AP/employee shall deposit funds with the FCM Member sufficient
to fully collateralize all orders given by the AP/employee to the FCM
Member prior to submission of such orders to the Exchange. Suchfunds, if and when transferred to Nadex, will be held by Nadex in the
Cleared Swaps Proprietary Account. A FCM Member will be
required to ensure that the AP/employee has on deposit with the
FCM Member enough funds to fully collateralize theAP’s/employee’s orders before any such order is submitted to
Nadex.
(b)

Each FCM Member must submit statements of financial condition at such times
and in such manner as shall be prescribed from time to time.

(c)Each FCM Member must maintain a separately identifiable position account foreach Customer and provide the identifier for such account with every ordersubmitted to Nadex.

(d)Each FCM Member must use due diligence in receiving and handling orders from
Customers, submitting such orders onto Nadex on behalf of such Customers,
responding to inquiries from Customers about their orders and reporting back to
Customers the execution of such orders.

(e)Each FCM Member must maintain policies and procedures acceptable to Nadex
that:
(i)

with respect to each FCM Customer who is an individual, restricts accessto any system through which such individual Customer submits orders to
the FCM Member for transmission to Nadex to that individual Customer;
and

(ii)

with respect to each FCM Customer who is not an individual:(1)

restricts access to any system through which the Customer’sorders may be submitted to the FCM Member for transmission to
Nadex to such individuals authorized to enter orders on behalf ofsuch Customer;(2)

requires each FCM Customer who is not an individual to have andmaintain a CFTC Interim Compliant Identifier or such other Legal
Entity Identifier deemed acceptable under CFTC regulations, whichshall be provided to Nadex with each order message submitted bysuch Person; and

34

(3)

identifies each individual authorized to enter orders on behalf ofsuch Customer by a distinct user identification code, which shall be
provided to the FCM Member and Nadex with each order message
submitted by such Person; and(4)requires the customer to maintain and provide to the FCM Memberor Nadex upon request by the FCM Member or Nadex information
identifying any individual who has entered orders on behalf of such
Customer’s account, including but not limited to the individual’s
name, taxpayer or other identification number, affiliation to theCustomer, address and contact information.

(f)

No FCM Member may maintain a proprietary trading account for Nadex contracts.
Notwithstanding the foregoing, a FCM Member may maintain error accounts
and/or test accounts.

(g)

An AP/employee may trade Nadex contracts for his or her personal account under
the following circumstances:(i)

All such trading of Nadex contracts by an AP/employee shall occur in a
trading account held by the FCM Member with which he or she is registeredor employed (or, in the case of an AP or an employee of a GIB, the FCM
Member who guarantees that IB). No AP/employee may be a direct (i.e.,
non-intermediated) Trading Member of Nadex or maintain an interest in orcontrol the trading in the account of any direct Trading Member of Nadex.

(ii)

The FCM Member must notify Nadex in writing, prior to permitting the FCM
Member’s AP/employee to submit orders to the Exchange, of theAP’s/employee’s name and account identifier.

(iii)

The FCM Member must notify Nadex immediately, in writing, in the eventthat the FCM Member’s AP/employee is no longer registered and/or
employed by the FCM Member.

(h)Prior to a FCM Member accepting any orders from a Customer for submission to
Nadex, a FCM Member must first have provided such Customer with the Nadex
Risk Disclosure Statement.

(i)Prior to a FCM Member accepting any orders from a Customer for submission to
Nadex, Nadex will require certification by the FCM Member to Nadex that its
system has the capacity to block cleared swaps customer collateral in accordancewith the requirements of Rule 5.5(b) and demonstrate that capacity to Nadex. In
addition, on an annual basis or as otherwise required by Nadex, each FCM Member
must represent to Nadex that the portion of the FCM Member’s system that blocks
35

cleared swaps customer collateral has not been changed in any material respect
or, if the system has been changed, the FCM Member must identify any suchchanges and recertify the system’s capacity to block cleared swaps customer
collateral in accordance with the requirements of Rule 5.5(b). Finally, each FCM
Member agrees to submit to any compliance review by Nadex of its systems inthis regard.
(j)With respect to the APs/employees of a FCM Member:(i)

Each FCM Member shall be responsible for diligently supervising the FCM
Member’s AP’s/employee’s compliance with all Exchange rules.

(ii)

Each FCM Member must maintain a complete and accurate list of all
APs/employees of the FCM Member. Such list shall be promptly provided
to the Exchange upon request.

(iii)

APs/employees must comply with Exchange rules. Each AP/employee
shall be bound by Exchange rules to the same extent as if such person werea member.

(iv)

Each FCM Member shall be responsible for the acts or omissions of the
FCM Member’s APs/employees, and may be liable for any fines imposed
upon such APs/employees by the Exchange. Any violation of an Exchange
rule by any such AP/employee may be considered a violation by the FCM
Member.

(k)

Each FCM Member must make and file reports in accordance with Commission
Regulations in a manner and form and at such times as may be prescribed by theCommission.

(l)Each FCM Member must make and file reports with Nadex at such times, in suchmanner and form, and containing such information as Nadex may prescribe fromtime to time.

(m)

Each FCM Member, upon a request of Nadex or any Regulatory Agency, must
promptly respond to any requests for information.

(n)Each FCM Member may invest cleared swaps customer collateral only inaccordance with Commission Regulations 22.2(e)(1) and 1.25.

(o)Each FCM Member must prepare, maintain and keep current those books andrecords required by the rules of Nadex, the CEA and/or the Commission’s
Regulations. Such books and records shall be open to inspection and promptly

36

provided to Nadex, its Designated Self Regulatory Organization (“DSRO”), theCommission and/or the U.S. Department of Justice, upon request.
SUPERVISION
Each Member and such Member’s designated supervisor must diligently supervise its Related
Parties, Authorized Traders, partners, directors, officers, agents, contractors, representatives, andemployees. For purposes of this Rule 3.5, Member means a non-individual Member of the
Exchange, including an Entity Trading Member, a FCM Member, or a Market Maker.
Such Member must establish, maintain and enforce reasonable supervisory procedures todemonstrate compliance with Applicable Laws and the Rules of the Exchange.
Such Member or its designated supervisor may be held directly or jointly liable for violations of
any Rules of the Exchange by such Related Parties, Authorized Traders, partners, directors,
officers, agents, contractors, representatives, and employees, regardless of whether the Member
or designated supervisor is held responsible for the act or acts constituting the violation. Such
Member or its designated supervisor will also be jointly liable for the payment of any resulting
fines of any Rules of the Exchange.
AUTHORIZED TRADERS(a)

An Entity Trading Member must register one or more individuals who will be
Authorized Trader(s) for the Entity Trading Member’s account, who are subject toapproval by Nadex. The Entity Trading Member and the Authorized Trader must
provide Nadex with any information it requests in connection with this registration
process. Before an Authorized Trader may enter orders or execute trades on theMarket, he/she must acknowledge having read and understood these Rules andagree to comply with these Rules. Only those individuals authorized by the Entity
Trading Member and approved by Nadex may enter and execute transactions on
the Market for the Entity Trading Member’s account. Any Authorized Trader
engaging in activity on the market may do so using only that Authorized Trader’sunique username and login credentials.

(b)

Nadex may withdraw or suspend the registration of any Authorized Trader if Nadex
determines that;(i)an Authorized Trader has caused the Entity Trading Member to fail tocomply with the Rules of Nadex;(ii)

an Authorized Trader is not properly performing the responsibilities of an
authorized representative of a Trading Member;

37

(iii)

an Authorized Trader has failed to comply with the conditions set forth inparagraph (a) of this Rule; or(iv)

it is in the best interests of maintaining a fair and orderly market to do so.

(c)

If the Entity Trading Member withdraws or Nadex suspends the registration of any
Authorized Trader, the Trading Member must ensure that such Authorized Trader
does not submit any quotes or orders into the Nadex system.

(d)

The registration of an Authorized Trader will be withdrawn upon the written
request of either the Authorized Trader or the Entity Trading Member for which an
Authorized Trader is registered. Such written request shall be submitted in amanner prescribed by Nadex. Until such written request is received and processedby Nadex, or an Authorized Trader’s registration is suspended or withdrawn
pursuant to paragraph (c) of this Rule, an Entity Trading Member will be
responsible for all activity of such Authorized Trader(s) related to Nadex.
REJECTION OF APPLICANT AND LIMITATIONS OF TRADING PRIVILEGES(a)

Notwithstanding Nadex’s authority granted under any other Rule, Nadex may, in its
sole discretion, deny any Member application, or suspend, revoke, limit, condition,
restrict, or qualify the trading privileges of any account owner pursuant to thisSection (a) or authorized trader of an account owner as it deems necessary or
appropriate4.

(b)

An account owner or an authorized trader of an account owner who has had
trading privileges limited pursuant to Section (a) of this Rule will be provided, in
writing, the reason such action was taken.

(c)

If Nadex denies the membership application of any Person or places limitations
on trading privileges pursuant to this section, the applicant, account owner orauthorized trader whose trading privileges have been limited may appeal thedecision by filing with the CEO of Nadex a petition for review of such membership
denial or trading limitation. The petition should describe in detail the reasons why
the membership application should be granted or trading limitations removed. The
petition must be filed within thirty (30) calendar days from the date upon whichnotice of the denial of membership or limitation of trading privileges was provided
by Nadex. The decision of the CEO will be final. A Person that has been denied
membership by the CEO will not be eligible for reapplication during the six months
immediately following such denial.

4 Please reference Notice 851.042117 in the Notices section of the Nadex website for an informational Q&A pageregarding this Rule.

38

(d)

If trading privileges are limited pursuant to Section (a) of this Rule, Nadex may
initiate a transfer of the Member’s balance to the bank account on record.
COMMUNICATIONSPARTICIPANTS

BETWEEN

NADEX

AND

MEMBERS

AND

OTHER

Each Member must provide Nadex with its current electronic mail address and immediately (andin any event within 24 hours) update that address whenever it changes. All communications
between Nadex, its Members, and other Participants, including confirmation of all transactions
executed where applicable, may be transmitted by electronic mail and/or posted on the Nadex
website in the English (American) language. Members and other Participants are responsible forpromptly reviewing and, if necessary, responding to all electronic communications from Nadex.
DUES, FEES, AND EXPENSES PAYABLE BY MEMBERS(a)

Members are not required to pay dues.

(b)Members may be charged fees in connection with the trading of Contracts in an
amount to be reflected from time to time on Nadex’s website.

(c)Members may be charged fees for settlement of Contracts at Expiration in an
amount to be reflected from time to time on Nadex’s website.

(d)Members may be charged an inactivity fee after a period of account dormancy as
reflected from time to time on Nadex’s website.

(e)Nadex or its settlement bank may also deduct from the Member’s account fees or
expenses incurred in connection with the Member’s trading or account activity or
Nadex’s administration in connection with that activity, such as fees for wiretransfers, check processing via electronic check. All such fees will be charged in
an amount to be reflected from time to time on Nadex’s website.

(f)

If Nadex determines in the future to impose dues or additional fees, the Member
will be provided notice of the change at the time the amended fees are filed with
the Commission. The new fee structure will be implemented no earlier than on thefirst available trade date for which the change may be implemented according to
the Commission’s self-certification filing requirements as set forth in Commission
Regulation §40.6(a).
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39

MARKET MAKERSREGISTRATION OF MARKET MAKERS(a)

Only Trading Members in good standing who are not individuals may become aMarket Maker of Nadex. A Member shall file a written Market Maker Application
with Nadex. Nadex shall consider such factors as business reputation, financial
resources and trading activity in relevant swaps, futures, options or related cash
markets in determining whether to approve a Market Maker Application.

(b)

The designation of any Market Maker may be suspended or terminated by Nadex
at any time and for any reason.
APPOINTMENT OF MARKET MAKERS(a)

Nadex shall appoint Market Makers to certain Classes of Contracts (“DesignatedClasses”) traded on Nadex. In making such appointments, Nadex shall consider (i)the financial resources available to the Market Maker, and (ii) the Market Maker’s
experience in market making in futures, options and other derivative products.

(b)

No appointment of a Market Maker to a Designated Class shall be made without
the Market Maker’s consent to such appointment, provided that refusal to accept
appointment to a Designated Class may be deemed sufficient cause for denial,suspension, or termination of registration as a Market Maker.

(c)Nadex may suspend or terminate any appointment of a Market Maker to a
Designated Class and may appoint more than one Market Maker to the same
Designated Class.

(d)Nadex may periodically conduct an evaluation of any Market Maker to determine
whether it has fulfilled performance standards relating to, among other things,
quality of the markets, competitive market making, observance of ethicalstandards, and administrative soundness. If the Market Maker fails to meet
minimum performance standards, Nadex may, among other things, (i) suspend,
terminate or restrict the Market Maker’s appointment to a particular DesignatedClass, (ii) restrict the Market Maker from appointments to additional DesignatedClass(es),or (iii) suspend, terminate or restrict the Market Maker’s registration assuch.
BENEFITS OF BECOMING A MARKET MAKER(a)

Market Makers will have access to Nadex via the FIX gateway for an additional fee
to be determined by Nadex. Market Makers may connect via the FIX Gateway overthe Internet or dedicated private circuit. Use of dedicated private circuit is only40

permitted for the submission of quotes. (b) Market Makers may receive reduced
trading fees as an incentive for fulfilling the obligations of a market maker. For
example, trading fees for Market Maker transactions via the FIX gateway may beless than other Trading Member fees via the FIX gateway.
(b)Market Makers shall have access to a designated group of operational andtechnical specialists at Nadex who handle issues relating to Market Makers.
OBLIGATIONS OF MARKET MAKERS

(a)

(b)

General – Transactions of Market Makers should constitute a course of dealings
reasonably calculated to contribute to the maintenance of a fair and orderly
market, and Market Makers shall not make bids or offers or enter into transactions
that are inconsistent with such a course of dealings. Ordinarily, Market Makers
shall be obligated to do the following:(i)

trade for the proprietary account of the Market Maker only;(ii)

maintain at least the minimum capital on deposit with Nadex inaccordance with the terms of the applicable Market Maker Agreement;(iii)

comply with all other terms of the applicable Market Maker Agreement; and(iv)

maintain two-sided displayed quotes, insofar as required by the Market
Maker Agreement, of a minimum designated quantity (“Size”) within apredefined spread (“Bid/Ask Spread”) for a Series of Contracts for a certain
period of time throughout the trading day, and comply with all other termsof the applicable Market Maker Agreement.
(1)

In ordinary market conditions, quotes must be made within amaximum Bid/Ask Spread.

(2)

The Market Maker Agreement sets forth specific conditions underwhich a Market Maker is permitted to refrain from quoting binding
bid and offer prices.

A Market Maker has a continuous obligation to engage, to a reasonable degree
under the existing circumstances, in dealings for the account of the Market Maker
when there exists, or it is reasonably anticipated that there will exist, a lack of pricecontinuity or a temporary disparity between the supply of and demand for
quotations in a Series of a Designated Class to which the Market Maker isappointed. Without limiting the foregoing, a Market Maker is expected to performthe following activities in the course of maintaining a fair and orderly market;

41

(i)

To post bid and ask quotations in all Designated Classes to which theMarket Maker is appointed that, absent changed market conditions, will behonored by the Market Maker.

(ii)

To update quotations in response to changed market conditions in all
Designated Classes to which the Market Maker is appointed.

(iii)

All Market Maker quotations shall be submitted as “Post-Only Quotes”. A
Market Maker is not permitted to submit Non Post-Only Orders.

(iv)

In the event a Market Maker has built a position size equal to or greaterthan 90% of any applicable position limit in a particular Class or Contract,
Market Maker is temporarily relieved of its quoting obligation for such
Class or Contract until Market Maker’s position in such Class or Contract
has been reduced to 75% of the applicable position limit, at which timequoting obligations as set forth in the Market Maker Agreement will
resume.

(c)Like other Members of Nadex, a Market Maker may not attempt to execute a tradeunless it has the excess funds in its Nadex account necessary to fully collateralize
its obligations of the trade.

(d)Approved Market Makers who are engaged in bona fide market-making activity
shall not be subject to the normal contract position limits, but rather will be subject
to alternative market maker position limits as specified in each Contract’s
specifications in Chapter 12 of this Rulebook. A Market Maker taking advantage
of an alternative market maker position limit must, within 1 Business Day following
a request by Nadex’s Compliance Department, provide the Nadex ComplianceDepartment with a trade register detailing all trading activity in any account owned
or controlled by the Market Maker in any relevant Underlying market during the 15
minutes immediately before and after any expiration time identified by Nadex’s
Compliance Department.

(e)

Duly appointed Market Makers may be charged a Wide Spread Surcharge as set
forth in the fee schedule.
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42

METHOD FOR MEMBERS TO TRADE CONTRACTSPRIOR REVIEW OF RISK DISCLOSURE STATEMENT AND THESE RULES AND
ACCEPTANCE OF TERMS OF MEMBERSHIP AGREEMENT IS REQUIRED(a)

Trading Member Applicants: No Person may become a Trading Member of Nadex
or trade any Contracts on the Market unless such Person has received, read,understood, and accepted the Nadex Risk Disclosure Statement, Terms of Use,
Privacy Policy, these Rules, and the Nadex Membership Agreement for Trading
Members, and has certified having have done so.

(b)

FCM Member Applicants: No entity may become a FCM Member of Nadex orintermediate the trading of any Contracts on the Market unless such entity hasreceived, read, understood, and accepted these Rules, Terms of use, Risk
Disclosure Statement, Privacy Policy, and the Nadex Membership Agreement for
FCM Members, and has certified having done so.

(c)Customers of FCM Members: No Person may be permitted by a FCM Member toenter orders or otherwise engage in any Nadex trading activity as a customer ofthat FCM Member unless such FCM Member has obtained certification from thecustomer that the customer has received, read, understood, and accepted theseRules, Risk Disclosure Statement, Privacy Policy, and the Terms of Use.
TRADING MEMBER AND AUTHORIZED TRADER ACCESS TO NADEX(a)

During the Nadex membership application process, an applicant to become a
Trading Member will be required to choose a user identification (“ID”) andpassword. The applicant will be required to enter the ID and password to log onto
and access secure portions of the Nadex website. Each time the applicant submits
its unique user ID and password to Nadex in order to log onto Nadex, the applicant
affirms that it understands and agrees to be bound by these Rules and otherpolicies of Nadex, as amended.

(b)

After an applicant’s membership application has been approved by Nadex and theapplicant has deposited the requisite amount of funds into its account as specified
under Rule 3.1(b), the applicant becomes a Trading Member. As a Trading
Member, such Person will be able to access the Market, execute trades, andotherwise access information regarding, or perform functions in, such Person’s
account using its ID and unique password.

(c)Each Authorized Trader shall maintain a unique ID and password, separate fromthe ID and password belonging to the Entity Trading Member and from any other
Authorized Trader of the Entity Trading Member, in order to access the markets
and engage in activity on behalf of its Entity Trading Member.
43

(d)

For account security and audit trail purposes, each Trading Member agrees that
Nadex may maintain logs of its IP address, and the IP address of any Authorized
Trader, used to access the Nadex website.

(e)Each Trading Member will be responsible for protecting its ID and password, andwith respect to an Entity Trading Member, the ID(s) and password(s) of its
Authorized Trader(s), from improper disclosure. In addition, a Trading Member
may not knowingly or negligently permit any Person not authorized by Nadex andby the Trading Member to use the ID and password to access the secure portionof the Nadex website. An Entity Trading Member and its Authorized Trader(s) areprohibited from allowing any other person or entity from using these credentials
to access the Nadex markets. Each Trading Member is required to immediately
notify Nadex if it knows, or has reason to believe, that its ID or the ID and/or
password of any Authorized Trader have been disclosed to any Person notauthorized by Nadex and the Trading Member to use such ID and/or password.
Under any circumstances, the Trading Member will be deemed to know that such
ID and/or password have been disclosed to an unauthorized person 12 hours after
any order is entered by that unauthorized person in your account.

(f)Each Trading Member will be liable for all costs and any losses that it may incurfrom transactions executed on Nadex by any person, authorized or not, using its
ID and password or the ID and/or password of any Authorized Trader. Nadex will
not be responsible in any way for unauthorized transactions in a Trading Member’s
account.

(g)

Each Trading Member is responsible for contracting with an Internet service
provider through which it will access the Nadex website and for having a backup
service provider if the Trading Member thinks it is necessary. Each Trading
Member is also responsible for maintaining an Internet connection speed
adequate for its needs. Nadex will not be responsible in any way for any orders
delayed or trades missed or not executed in a timely fashion because of failure of
the Trading Member’s Internet service provider or slowness of its Internet
connection speed. No communication from a Trading Member will be deemed tohave been received by Nadex until that communication is logged by the Nadex
server.

(h)Nadex in its discretion may place a Trading Member’s account on hold (prohibiting
any order activity) or on hold-liquidation only (allowing only orders to liquidate
existing positions). In such circumstances, Nadex will promptly notify the affected
Trading Member of the nature of and reason for the action.
TRADING CONTRACTS – TRADING MEMBERS

44

(a)

Trading Members will be able to trade (1) Variable Payout Contracts by enteringbids or offers at prices based on the values or levels of the Underlying at which
they are willing to open a Long Variable Payout Contract or a Short Variable Payout
Contract and (2) Binary Contracts by entering bids to purchase or offers to sell
those Contracts at which Trading Members are willing to open or close a longposition in a Binary Contract or open or close a short position in a Binary Contract.
After logging into the secure portion of the Nadex website, the Trading Member
will input its orders into the Nadex trading system.

(b)

When a Trading Member’s order is matched by an order from another Member(s);(i)

If the Trading Member’s order is to enter into one or more Variable Payout
Contracts for which that Trading Member does not have an offsetting
position in its account, Nadex will check its account to ensure it hasenough funds to cover its maximum loss under the Variable Payout
Contract(s) it is attempting to enter into. If the Trading Member does nothave the necessary funds in its account, Nadex will cancel its order prior totrade execution. If the Trading member does have the necessary funds in
its account, Nadex will execute the trade. Upon trade execution, Nadex will:(1) debit the funds from the Trading Member’s account in an amountnecessary to cover the maximum loss, (2) credit that amount to the Nadex
settlement account, and (3) place the Variable Payout Contracts that were
the subject of the executed trade into the Trading Member’s account and(4) notify the Trading Member by electronic mail that the trade has been
executed. The maximum amount that the Trading Member can lose undera Long Variable Payout Contract (and, therefore, the amount that will bedebited from its account and then paid into the Nadex settlement account)is determined by subtracting the Floor from the Opening Trade Value andthen multiplying the resulting figure by the Dollar Multiplier. The maximum
amount that a Trading Member can lose under a Short Variable Payout
Contract is determined by subtracting the Opening Trade Value from theCeiling and then multiplying the resulting figure by the Dollar Multiplier.

(ii)

If the transaction involves entering into one or more Variable Payout
Contracts for which the Trading Member has an offsetting position in its
account (for example, entering into a Short Variable Payout Contract of aSeries when the Trading Member has a Long Variable Payout Contract ofthat same Series in its account), upon execution of the trade Nadex will: (1)close the offsetting position in the Trading Member’s account; (2) debit theNadex settlement account in the amount of (A) any gains realized by theoffsetting transaction; and (B) any funds that were debited from the
Trading Member’s account at the time the Variable Payout Contract(s) thatis being closed was entered into and that were not also used to pay any
45losses on such Contract(s); (3) credit those amounts to the Trading
Member’s account; and (4) notify the Trading Member by electronic mailthat the trade has been executed.
(iii)

If the Trading Member’s order is to enter into one or more Binary Contracts
for which it does not have an offsetting position in its account, Nadex will
check the Trading Member’s account to ensure it has enough funds tocover its maximum loss under the Binary Contract(s) it is attempting toenter into. If the Trading Member does not have the necessary funds in its
account, Nadex will cancel its order prior to trade execution. If the Trading
Member does have the necessary funds in its account, Nadex will executethe trade. Upon trade execution, Nadex will: (1) debit the funds from the
Trading Member’s account in an amount necessary to cover the maximum
loss, (2) credit those funds to the Nadex settlement account, and (3) place
the Binary Contracts that were the subject of the order into the Trading
Member’s account and (4) notify the Trading Member by electronic mailthat the trade has been executed. The maximum amount that a Trading
Member can lose under a long position in a Binary Contract (and, therefore,
the amount that will be debited from the Trading Member’s account andthen paid into the Nadex settlement account) is determined by the price atwhich the Trading Member entered into the long Binary Contract. The
maximum amount that the Trading Member can lose under a short position
in a Binary Contract is determined by subtracting the price at which it soldthe position short from the Binary Contract’s Settlement Value. For
example, if a Trading Member enters into a short position in a Binary
Contract with a $100 settlement Value at a trade price of $40, the Trading
Member’s maximum loss on that position would be $60 ($100- $40 = $60).

(iv)

If the transaction involves entering into one or more Binary Contracts forwhich a Trading Member has an offsetting position in its account (forexample, selling a position in a Binary Contract of a Series when the
Trading Member is long a Binary Contract of that same Series in its
account), upon execution of the trade Nadex will: (1) close the offsetting
position in the Trading Member’s account; (2) debit the Nadex settlement
account in the amount of (A) any gains realized by the offsetting
transaction; and (B) any funds that were debited from the Trading
Member’s account at the time the Binary Contract(s) that is being closed
was entered into and that were not also used to pay any losses on such
Contract(s); (3) credit those amounts to the Trading Member’s account;and (4) notify the Trading Member by electronic mail that the trade has
been executed.

46

(c)

If a Trading Member’s order is placed on the market and not immediately matchedby an order from another Member, it will rest on the market until it is matched andexecuted in accordance with the procedures outlined above in this Rule, until theMember cancels it, or until it is cancelled by Nadex upon the Expiration of theSeries or otherwise in accordance with these Rules.
TRADING CONTRACTS – CUSTOMERS OF FCM MEMBERS(a)

Nonmembers of Nadex will be able to trade Nadex Contracts only as Customersof an FCM Member and all Customer orders must be transmitted to Nadex fromeach Customer’s FCM Member. Each FCM Member shall maintain a secureconnection to Nadex and comply with all technical and other requirements
established by Nadex for this purpose.

(b)

Each FCM Member shall maintain a separate Nadex Position Account for the
positions of each of its Customers and will indicate, when submitting any orders
to Nadex, the Customer Position Account for which the order is submitted, as wellas any other information required by Nadex.

(c)

FCM Members will be able to submit orders for their customers (“FCM Customer
Orders”) to trade (1) Variable Payout Contracts by submitting bids or offers at
prices at which the Customer is willing to open a Long Variable Payout Contract ora Short Variable Payout Contract and (2) Binary Contracts by entering bids topurchase or offers to sell those Contracts at which the Customer is willing to open
or close a long position in a Binary Contract or open or close a short position in a
Binary Contract.

(d)

For purposes of this Rule, “settlement account” refers to the FCM Cleared Swaps
Customer Account if the orders/trades are placed in a FCM Member’s Customer
Position Account. “Settlement account” refers to the FCM Cleared Swaps
Proprietary Account if the orders/trades are placed in a FCM test, error, or
AP/employee Position Account.

(e)When a FCM Customer Order is matched by an order from another Member(s):(i)

If the FCM Customer Order is to enter into one or more Variable Payout
Contracts for which that Customer does not have an offsetting position in
its FCM Customer Position Account, Nadex will check the FCM settlement
account to ensure it has enough funds to cover the maximum loss under
the Variable Payout Contract(s) that the FCM Customer is attempting toenter into. If the FCM settlement account does not have the necessary
funds for that trade, Nadex will cancel the FCM Customer Order prior totrade execution. If the FCM settlement account does have the necessary
funds, Nadex will execute the trade. Upon trade execution, Nadex will: (1)47debit the funds from the FCM settlement account in an amount necessary
to cover the maximum loss, (2) credit that amount to the Nadex settlement
account, (3) place the Variable Payout Contracts that were the subject of
the executed trade into the FCM Customer Position Account, and (4) notify
the FCM Member by FIX message that the trade has been executed. The
maximum amount that the FCM Customer can lose under a Long Variable
Payout Contract (and, therefore, the amount that will be debited from the
FCM settlement account and then paid into the Nadex settlement account)is determined by subtracting the Floor from the Opening Trade Value andthen multiplying the resulting figure by the Dollar Multiplier. The maximum
amount that the FCM Customer can lose under a Short Variable Payout
Contract is determined by subtracting the Opening Trade Value from theCeiling and then multiplying the resulting figure by the Dollar Multiplier.
(ii)

If the transaction involves entering into one or more Variable Payout
Contracts for which the FCM Customer has an offsetting position in its
FCM Customer Position Account (for example, entering into a Short
Variable Payout Contract of a Series when the FCM Customer has a Long
Variable Payout Contract of that same Series in its FCM Customer Position
Account), upon execution of the trade Nadex will: (1) close the offsetting
position in the FCM Customer Position Account; (2) debit the Nadex
settlement account in the amount of (A) any gains realized by the offsetting
transaction; and (B) any funds that were debited from the FCM settlement
account at the time the Variable Payout Contract(s) that is being closed
was entered into and that were not also used to pay any losses on such
Contract(s); (3) credit those amounts to the FCM settlement account; and(4) notify the FCM Member by FIX message that the trade has been
executed.

(iii)

If the FCM Customer Order is to enter into one or more Binary Contracts
for which that Customer does not have an offsetting position in its FCM
Customer Position Account, Nadex will check the FCM settlement accountto ensure it has enough funds to cover its maximum loss under the Binary
Contract(s) it is attempting to enter into. If the FCM settlement accountdoes not have the necessary funds for that trade, Nadex will cancel the
FCM Customer Order prior to trade execution. If the FCM settlement
account does have the necessary funds, Nadex will execute the trade. Upon
trade execution, Nadex will: (1) debit the funds from the FCM settlement
account in an amount necessary to cover the maximum loss, (2) credit
those funds to the Nadex settlement account, (3) place the Binary
Contracts that were the subject of the order into the FCM Customer
Position Account and (4) notify the FCM Member by FIX message that thetrade has been executed. The maximum amount that the FCM Customer48

can lose under a long position in a Binary Contract (and, therefore, theamount that will be debited from the FCM settlement account and thenpaid into the Nadex settlement account) is determined by the price atwhich the FCM Customer entered into the long Binary Contract. The
maximum amount that the FCM Customer can lose under a short position
in a Binary Contract is determined by subtracting the price at which it soldthe position short from the Binary Contract’s Settlement Value. For
example, if a FCM Customer enters into a short position in a Binary
Contract with a $100 Settlement Value at a trade price of $40, the FCM
Customer’s maximum loss on that position would be $60 ($100 - $40 =
$60).
(iv)

(f)

If the transaction involves entering into one or more Binary Contracts forwhich that Customer has an offsetting position in its FCM Customer
Position Account (for example, selling a position in a Binary Contract of aSeries when the Customer is long a Binary Contract of that same Series in
its FCM Customer Position Account), upon execution of the trade Nadex
will: (1) close the offsetting position in the FCM Customer Position
Account; (2) debit the Nadex settlement account in the amount of (A) any
gains realized by the offsetting transaction; and (B) any funds that were
debited from the FCM settlement account at the time the Binary
Contract(s) that is being closed was entered into and that were not also
used to pay any losses on such Contract(s); (3) credit those amounts to
the FCM settlement account; and (4) notify the FCM Member by FIX
Message that the trade has been executed.

If a FCM Customer Order is placed on the market and not immediately matched byan order from another Member, it will rest on the market until it is matched andexecuted in accordance with the procedures outlined above in this Rule, until the
FCM Customer cancels it, or until it is cancelled by Nadex upon the Expiration of
the Series or otherwise in accordance with these Rules.
ORDER ENTRY(a)

Trading Member Orders(i)

A Trading Member, who is not engaged in activity pursuant to a Market
Maker Agreement, will enter orders to trade Contracts by electronictransmission over the Internet. Order rate limiter functionality will cap the
maximum number of orders that may be submitted to the Exchange persecond (or per a specific time period expressed in seconds) per Trading
Member or Authorized Trader of a Trading Member, in order to prevent a49

risk of harm to the Exchange. Similarly, Nadex may limit the number ofmessages submitted to the Exchange for the same purpose.

(b)

(ii)

A Trading Member will enter an order to trade one or more Contracts byindicating to Nadex in the manner required by Nadex: (1) order direction(i.e., buy or sell); (2) order type (e.g., Limit Order or Market Order); (3)duration of the order (e.g., Fill or Kill, Immediate or Cancel, Good ‘Til
Cancel); (4) the Series of Contract; (5) the limit price at which the Trading
Member wants to buy or sell the Contract, in the case of Limit Orders; (6)the number of Contracts the Trading Member want to buy or sell, and (7)the Tolerance Protection in the case of Market Orders With Protection.

(iii)

In order to enter an order to trade one or more Contracts, a Trading Member
will be required to submit the order to Nadex. Once the order is acceptedby Nadex, Nadex will assign to the order an order confirmation number.
This confirmation number will appear next to the associated order on the
Trading Member’s Order Ticket and Order History account pages. The
Trading Member will be responsible for any and all order entries confirmed
for its account and accepted by Nadex.

(iv)

Any Member submitting orders, or any other messages directly to the
Exchange, including but not limited to messages related to the cancellationor amendment of an order, whether manually or via automatedfunctionality, must ensure adequate controls are in place to prevent
excessive messaging or other activity that may be deemed detrimental or
disruptive to the Exchange.

FCM Customer Orders(i)

A FCM Customer may not submit orders directly to the Exchange and allsuch order must be submitted by that Customer’s FCM Member.

(ii)

FCM Members may submit FCM Customer Orders by electronictransmission over a FIX Connection by Internet (SSL only), in accordancewith Nadex’s applicable policies and procedures.

(iii)

FCM Members will submit a FCM Customer Order to trade one or more
Contracts by indicating to Nadex in the manner required by Nadex: (1) orderdirection (i.e., buy or sell); (2) order type (e.g., Limit Order or Market Order);(3) duration of the order (e.g., Fill or Kill, Immediate or Cancel, Good ‘Til
Cancel); (4) the Series of Contract; (5) the limit price at which the FCM
Customer wants to buy or sell the Contract, in the case of Limit Orders; (6)the number of Contracts the FCM Customer wants to buy or sell; (7) the
Tolerance Protection in the case of Market Orders With Protection; (8) the50

FCM Customer Position Account identifier; and (8) the user identifier forthe person who directed the submission of the order to the Exchange.
(iv)

(c)

Upon receipt of a FCM Customer Order to trade one or more Contracts, a
FCM Member will be required to ensure that the FCM Customer has on
deposit with the FCM Member enough funds to cover the FCM Customer’s
maximum loss under the Contract(s) it is attempting to enter into before
the order is submitted to Nadex. When the order has been submitted to andaccepted by Nadex, Nadex will assign to the order an order confirmation
number. This confirmation number will appear next to the associated orderon the FCM Member’s Order and Order History account pages. The FCM
Member will be responsible for any and all order entries confirmed for its
FCM Customer Position Accounts and its settlement accounts andaccepted by Nadex.

Nadex’s trading system will keep an electronic record of all orders to trade
Contracts, and all executed Contract trades. The records kept by Nadex will include
all of the terms identified in paragraphs (a)(ii) – (iii) and (b)(iii) – (iv) of this Ruleas well as the date and time that the transaction was completed to the nearest
tenth of a second, for all executed Contract trades and to the nearest second forall orders to trade Contracts.
RECORDKEEPING OF FCM CUSTOMER ORDERS(a)

FCM Members shall maintain an electronic record of all FCM Customer Orders totrade Contracts received by the FCM Member, and all order, trade and expiration
confirmations received by the FCM Member regarding its customer’s accounts.

(b)

Other than the electronic record required in subpart (a) of this rule, no FCM
Member is required to create or maintain any separate record for FCM Customer
Orders received by a Member or Authorized Trader which are immediately enteredonto the Nadex system, unless otherwise required by these Rules. However, if a
FCM Member receives a Customer order that cannot be immediately entered into
the Nadex system, such Member or Authorized Trader must prepare a written
record of the order and include the account designation, date and time of receipt
and order instructions, including price, quantity and order type information. The
written record of the order shall be time-stamped when received and appropriately
indicate when (i) the order was submitted, (ii) confirmation of execution orcancellation after expiration and/or (iii) the order was cancelled in whole or in part.

(c)

All time-stamps required under Rule 5.6(b) must show the time to the nearest
minute.

51

(d)All written orders and any other original records pertaining to orders enteredthrough the Nadex system must be retained by the FCM Member for no less than
five years. For orders that were entered immediately upon receipt into the Nadex
system, the electronic records required in subpart (a) of this rule shall be deemedthe original records of the transaction.
HANDLING OF CUSTOMER ORDERS(a)

Withholding Orders Prohibited. No FCM Member or AP/employee thereof may
withhold or withdraw from the market any order or any part of an order for the
benefit of any Person other than the Person placing the order.

(b)

Disclosing Orders Prohibited

(c)

(i)

It is a violation of this Rule 5.7 for any Person to disclose another Person’sorder to buy or sell any Contracts except as may be requested by Nadex or
the Commission.

(ii)

It is a violation of this Rule 5.7 for any Person to take action or direct
another Person to take action based on non-public order information,
however acquired.

Trading Against Customer Orders Is Prohibited
(i)

(d)

No FCM Member or AP/employee thereof in possession of a FCM
Customer Order may enter into a transaction opposite such FCM Customer
Order directly or indirectly for him/herself or any other Person with whomsuch FCM Member or AP/employee has a direct or indirect financial
interest.

Trading Ahead (Front-running) of Customer Orders Is Prohibited(i)

No FCM Member or AP/employee thereof in possession of a FCM
Customer Order to be submitted to the Exchange shall enter an order tobuy or sell in the same product for its/his own account or an account inwhich it/he has a direct or indirect financial interest.

TRANSFER TRADES AND ADJUSTED ORDERS(a)

A FCM Member may transfer a trade in any Contracts on the Exchange from one
FCM Customer account to another account i) within the same FCM Member or ii)
to another FCM Member, provided that the transfer would not result in a change inbeneficial ownership in any Contract, unless the transfer is made in order to:

52

(i)

correct an error in a previously executed transaction, in which case the
FCM Member must be able to provide evidence of such error in a form
prescribed by Nadex;(ii)

reflect a change in ownership occurring by operation of law due to thedeath or bankruptcy of a Person having an ownership interest in such
Contract; or(iii)

facilitate a merger, consolidation, disposition of a line of business,reorganization, or similar event affecting such Person.

(b)

A Member that transfers a Contract trade shall notify Nadex of the transfer in amanner and form as prescribed by Nadex.

(c)Transfers of FCM Customer trades shall be made at the historic price at whichsuch transactions were executed.

(d)

A FCM Member may not adjust the price at which an order was executed and will
not be held responsible for executing or failing to execute an order unless such
FCM Member was negligent or is settling a bona-fide dispute regarding
negligence.

(e)

A FCM Member may not be compelled to make an adjustment in the absence of abona-fide dispute regarding negligence.

(f)

FCM Members shall document all adjustments. FCM Members shall make andretain a record which contains the date the adjustment was received, the name ofthe person making the adjustment, the account to which the adjustment wascredited, the amount of the adjustment, the order number and the reason for the
adjustment. Such records must be provided to the Compliance department uponrequest.
DISPUTED ORDERS(a)

If a Member or a FCM Customer believes that an order to trade one or more
Contracts was incorrectly executed or rejected by Nadex that Member or FCM
Customer may request review of the order by providing the confirmation number
for the order and stating the grounds for its disagreement with the handling of theorder.

(b)

Upon receipt of a request for review of an order and the accompanying
confirmation number, Nadex will review its electronic audit trail to determine if theNadex trading system correctly interpreted and executed the order.

53

(c)

If the review described in paragraph (b) of this Rule reveals that the Nadex trading
system made a mistake, the order will be cancelled and the accounts of all
Members, including any FCM Customer Position Accounts, that were party to theorder will be returned to their state before the trade was executed.

(d)

If the review described in paragraph (b) of this Rule reveals that the Nadex trading
system did not make a mistake, Nadex will inform the Person who requested thereview of its determination that the order was properly handled, the evidence
supporting that determination, and that an adjustment will not be made.

(e)

A Trading Member or an FCM Member on behalf of a Customer may appeal a
determination under paragraph (d) of this Rule to a Nadex compliance officer
through the electronic mail address provided on the Nadex website. The Member
making the appeal will be required to provide a response to the evidence describedin paragraph (d) of this Rule that the order was properly handled, and the Member
may provide any other information it wishes to disclose. If the Member’s appeal
does not contain a response to the evidence described in paragraph (d), it will berejected. The compliance officer will decide the appeal no later than 10 days after
its receipt, and that decision will be final.

(f)Nadex will document in writing all requests for review of orders received by Nadex,
the time and manner in which Nadex reviewed its electronic audit trail in responseto the request, the outcome of that review, and the action or actions taken by
Nadex in response to that review, including the results of any appeal filed underparagraph (e) of this Rule and the review conducted by the compliance officer in
deciding that appeal.
ACCEPTABLE ORDERS(a)

A Member who is not a Market Maker may enter only Non-Post Only Orders (thatis, any acceptable Order other than a Post-Only Quote as set forth in the definitionof “Order” in Section 1.1 of this Rulebook) to trade Contracts on the Market.

(b)

Duly appointed Market Makers who are making markets pursuant to suchappointment shall submit market maker quotations as Post-Only Quotes. “PostOnly Quotes” are quotes that provide liquidity to a market in that they can bematched opposite any Non-Post Only Order submitted by a Member, but cannot
be matched opposite another Post-Only Quote submitted by another Market
Maker. For example, like a Good ‘Til Cancel Order, a Post-Only Quote is an offer tobuy or sell the number of Contracts specified at the price specified, or a better
price if a better price is available. However, unlike a Good ‘Til Cancel Order, PostOnly Quotes will not be matched opposite another Post-Only Quote. Post- Only
Quotes can be submitted in one of two forms: Post-Only (Reject) and Post-Only(Price Adjustment) Quotes, as those terms are defined in Section 1.1.
54

PRIORITY OF ORDERS
Subject to the provisions of rule 5.10(b) regarding Post-Only orders, the Market’s trading
algorithms execute all trades by matching orders according first by price and then time priority.
This means that orders and quotes entered at different prices will be executed in order of price,from best to worst, regardless of what time they were placed on the Market, and orders andquotes placed on the Market at the same price will be executed in order of time, from oldest to
most recent.
FILLING ORDERS TO TRADE CONTRACTS
Subject to the provisions of Rule 5.10(b) regarding Post-Only Quotes, the Nadex trading system
will fill all orders to trade Contracts on an “or better” basis. This means that if a Member places
an order to buy a Contract or Contracts at a price higher than the price of the best sell offer on
the market, the system will fill that order to buy at the better sell offer price(s) until all available
sell offers under or equal to that buy order’s limit price are filled or until that buy order iscompletely filled. Likewise, if a Member enters a sell order at a price lower than the price of thebest bid, the system will fill that sell order at the better bid price(s) until all available bids over thatsell order’s limit price are filled or that sell order is completely filled. If an order is only partiallyfilled, the unfilled portion of that order will remain in the order book as a resting order at the limit
price specified. Should an opposite order at the same price or better than the original ordersubsequently be placed in the system, the unfilled portion of the original order will be executed
opposite that new order at the original order’s limit price.
MODIFICATION AND CANCELLATION OF ORDERS(a)

A Member can submit instructions to either cancel or modify an order which that
Member has placed on the Market if that order has not yet been executed. Upon
submission of instructions to either cancel or modify an order that has not been
executed, the Nadex system will withdraw the order from the order book andconfirm the cancellation of the order. If a Member seeks to amend an order, Nadex
will provide the Member with the details of the existing order and the Member willbe allowed to change any part of the order except the Underlying. Nadex will thenprovide a new order confirmation number and inform the Member that the system
will treat the modified order as a new order, causing the amended order to lose its
original time priority.

(b)

Nadex will attempt to modify or cancel an existing order as soon as possible after
a Member enters a modification or cancellation instructions. However, the order
may be executed before Nadex is able to cancel or modify it. If an order has been
filled in whole or in part, a Member may modify or cancel only that portion of theorder (if any) that has not been executed.
TRADE CANCELLATIONS
55

(a)

As a designated contract market, Nadex has the authority to adjust trade prices orcancel trades when necessary to mitigate market disrupting events caused bymalfunctions in its electronic trading platform(s) or errors in orders submitted by
Members and market participants. However, due to the fully collateralized andshort-term nature of trading on Nadex, the circumstances in which this authority
will be exercised are limited.

(b)

Nadex, in its discretion and in accordance with these Rules, may cancel a trade ina Variable Payout Contract that has been executed on the market at a price that isinconsistent with prevailing market conditions due to improper or erroneousorders or quotes being matched on the Market (“Erroneous Trade”). With respect
to Binary Contracts, Nadex will generally not cancel or adjust an Erroneous Trade
except in extraordinary circumstances as determined by the Exchange.

(c)Nadex may review a Variable Payout Contract trade based on its own analysis of
the Market or pursuant to a request for review by a Member or other third party. A
request for a review by a Member or other third party must be received by Nadex
no later than fifteen (15) minutes after the trade has been executed on the Market
and before the expiration of the contract. Nadex will promptly determine whether
the trade will be subject to review and then promptly post notice indicating thatthe trade is under review.
(i)

During the review, Nadex will calculate a Fair Value for the underlying at thetime of the questioned trade by utilizing the last value or price of theUnderlying at the time of the trade and/or any other relevant market
information obtained or presented to Nadex.

(ii)

Once a Fair Value has been calculated, 5 percent of the maximum contract
value will be added above such Fair Value and below such Fair Value todetermine the “No Bust Range”. In the event that the Fair Value is less than
5 percent above the Floor or below the Ceiling, the No Bust Range shall be
a 10 percent range above the Floor or below the Ceiling. During conditions
which would qualify as either a Suspension Event or Modification Event, orin other circumstances in which Nadex determines it is appropriate, Nadex
may, without prior notice, temporarily double the No Bust Range.

(iii)

If Nadex determines that a trade has been executed within the No Bust
Range, the executed trade will stand. If Nadex determines that a trade has
NOT been executed within the No Bust Range, Nadex will promptly cancel
the trade by busting the Erroneous Trade off the market. Once theErroneous Trade has been cancelled, Nadex shall:(1)

notify the Members that were parties to the Erroneous Trade(s) that
Nadex has cancelled the Erroneous Trade(s). Nadex will notify such56

Members within thirty (30) minutes from receiving notice of theErroneous Trade unless impractical to do so within the notice
period.
(2)(iv)

publish all necessary price corrections in a notification on the
Nadex website.

The decisions of Nadex regarding Fair Value of the underlying, the No Bust
Range, the doubling of the No Bust Range, the cancellation of an Erroneous
Trade, or any other determination hereunder shall be final and not subject
to appeal.

INVALIDATION OF ORDERS UPON SUSPENSION OR REVOCATION OF FCM
MEMBER STATUS(a)Upon suspension or revocation of a FCM Member by Nadex, any open order on theMarket for such FCM Member’s Customer shall be cancelled by Nadex.
INVALIDATION OF TRADES UPON SUSPENSION OR REVOCATION OF FCM
MEMBER STATUS(a)Upon suspension or revocation of a FCM Member by Nadex, any trade
subsequently executed on the Market for such FCM Member’s Customer shall be
invalid. Nadex shall cancel any transaction pursuant to this Rule by entering acounter transaction onto the Market at the price at which the cancelled transaction
was effected.
VIEWING THE MARKET AND EXECUTED ORDERS

Nadex will allow its Members to view the current best bid and offer on the Market, as well as thedepth of the order book up to the fifth level of prices.
HOURS FOR TRADING CONTRACTSThe Market will be open for execution of your orders during specified hours in a regular trading
session from 11:00 p.m. (T-1) to 4:15 p.m. Eastern Time Friday through the following Friday,
excluding end-of- day processing hours which occur between 5:00 p.m. and 6:00 p.m. Eastern
Time on Saturday through Thursday. Specific listing hours for each contract are available on the
Nadex website.
Please note that Nadex trading hours, including the trading hours and trading hours for individual
contracts, are subject to change due to holiday, availability of underlying products, emergency, orother event necessitating a halting or closure of trading. Any changes to Nadex trading hours due
to a US or foreign holiday will follow the Product Schedule Guidelines for Holidays, unless57otherwise indicated on the Notices page of the Nadex website. Any other changes in trading hours
or product availability will be posted on the Nadex website.
Members may access account information when the Market is closed. Members may enter neworders and/or cancel or modify open orders whenever those markets are available for trading.
PROHIBITED TRANSACTIONS AND ACTIVITIES(a)Members are prohibited from entering orders on the Market if there are insufficient
funds or Contracts in the Member’s settlement account to satisfy such orders ifthey are executed. Subject to the conditions set forth in Rule 9.2(f) and Rule 9.6, if
you violate this Rule, the following penalties may apply:

Number of Per Incident
Violations Within a
Calendar Year

Penalty1.

$10 fee deducted from the Member’s settlement account.

2.

$10 fee deducted from the Member’s settlement account, and theMember will be required to re-certify that it has read and agree tobe bound by this Rule 5.13(a).

3.

$15 fee deducted from the Member’s settlement account, and theMember will be required to give a satisfactory explanation as towhy the Rule violation occurred, or (in the case of Trading
Members) trading privileges may be suspended for 30 days.

4.

$20 fee deducted from the Member’s settlement account and (inthe case of Trading Members) suspension of trading privilegesfor 30 days (regardless of explanation).

5.

$25 fee deducted from the Member’s settlement account and (inthe case of Trading Members) suspension of trading privileges
for 6 months (regardless of explanation).

6.

$30 fee and revocation of trading privileges (regardless of
explanation).

Nadex may, in its discretion, take such other action against a Member or market participant if thecircumstances warrant, subject to Rule 9.2(f) and Rule 9.6.
(b)

No Person shall enter into or attempt to enter into any non-competitive trade on
the Market, including any accommodation trade or any trade that has been directly
or indirectly prearranged. For example, a Member may not agree in advance withanother Member that one of the Members will enter an order and the other Member
58will attempt to trade against that order by timing the submission of orders orotherwise.
(c)

No Person shall enter into or attempt to enter into any trade on the Market that:(i)does not result in a change in beneficial ownership,(ii)

is designed to unnaturally inflate trading volume,(iii)

in any way attempts to circumvent the Market’s order processing, tradeordering, trade execution systems, or otherwise to circumvent exposure of
the order to open and competitive bidding on the Market, or(iv)

that has some other illegitimate purpose.

(d)

No Person shall enter into any trade designed or used to cause any price for aContract other than a true and bona fide price to be reported, registered, or
recorded by the Market.

(e)

No Person shall trade in, transfer, assign, or otherwise dispose of Contracts otherthan as provided for in these Rules.

(f)

No Person shall enter into or agree to transfer or transfer the benefit of any
position in any Contract to another person other than through a transaction
executed through the Market.

(g)(i) No individual Trading Member shall trade for a person or entity other than itself
and no Authorized Trader of an Entity Trading Member shall trade for a person orentity other than the Entity Trading Member for whom that Person is an Authorized
Trader.
(ii)

No individual or Entity Trading Member may deposit funds, or allow funds
to be deposited into their Nadex account from any bank account or debitcard not held in the same name as their Nadex account.5(h)

No Person shall engage in any activity that presents a risk of harm to Nadex, its
Members, or the public.

(i)

No Person shall engage in any activity that adversely affects the integrity of theMarket or its underlying systems.

5 Rule 5.19(g)(2) does not prevent the Trading Member from allowing deposits to be made to the Trading Member’s

Nadex account by the Exchange, including but not limited to, in the event of an order cancellation, trade cancellation,
expiration value adjustment, ledger adjustment, refund of wire transfer fees, refund of returned deposit fees, orincentive program.

59

(j)

No Person subject to arbitration under these rules shall fail to abide by anarbitration decision or award handed down under Chapter 10 of these Rules.

(k)

No Person shall intentionally provide misleading, erroneous, or fraudulent
information to Nadex on a membership application or otherwise.

(l)

No Person shall create a false appearance of a partnership, agency, employment
or affiliate relationship with Nadex and no Person shall unlawfully solicit customer
funds for deposit at Nadex.

(m)

No Member may operate or solicit in any capacity that may require registration
with the Commodity Futures Trading Commission (CFTC) without being properly
registered.

(n)

No Person shall engage in any activity that violates any anti-fraud provision, any
anti-manipulation provision, or any other provision of the CEA or the Commission’s
Regulations.

(o)

No Member shall deposit funds into its Nadex account from an account which
does not hold sufficient funds at the time of deposit, and at the time the deposit ispresented by Nadex for payment.

(p)

No Member shall make a false representation to a third party regarding any deposit
made into that Member’s Nadex account which would result in a chargeback orstop payment of funds to the Member’s account.

(q)

No Member shall allow its settlement account balance to become negative by anymeans. In the event that a Member’s settlement account balance becomes
negative, the Member must immediately deposit additional funds to correct the
deficiency. Any Member whose settlement account carries a negative balance for
30 days or more is subject to summary termination of Membership. Nadex may, in
its discretion, take such other action against a Member or market participant if thecircumstances warrant, subject to Rule 9.2(f) and Rule 9.6.

(r)

No FCM Member shall enter any bids, offers or transactions on the Market if it
knows or should know that it is subject to early warning reporting requirements
under Commission Regulation 1.12, is subject to a proceeding in bankruptcy or isotherwise unable to pay its obligations as they become due, without the priorwritten approval of Nadex.

(s)

No FCM Member shall knowingly carry an account, enter an order or effect any
transactions for any employee of Nadex without the prior written consent of theemployer.

60

(t)

No Member shall engage in conduct or practices inconsistent with just andequitable principles of trade or conduct or practices detrimental to the bestinterests of the Exchange, its Members and/or FCM Customers.

(u)

No FCM Member that receives an order to buy or sell a Contract for execution on
Nadex shall directly or indirectly guarantee the execution of the order or any of its
terms, including quantity or price. A FCM Member may only report to a FCM
Customer a trade that has been executed or reported on the Nadex Market.

(v)

If a Member is an Insider of any public company that has access to material nonpublic information that is the subject of an Underlying of any Contract, that
Member is prohibited from attempting to enter into any trade or entering into any
trade, either directly or indirectly, on the market in such Contracts. An “Insider”
means any person who has access to or is in a position to have access to material
non-public information before such information is made publicly available. Without
limiting the generality of the foregoing restriction, an Insider includes any officer
or director of a public company, any employee who works in the company’s
financial or accounting department, and any employee of the company’s
accounting firm who performs services for the public company.

(w)

No Person shall engage in any activity that constitutes fraudulent or abusive
trading, including but not limited to violating bids or offers; demonstrating
intentional or reckless disregard for the orderly execution of transactions during
the closing period; or spoofing.

(x)

No Person shall engage in any trading activity intended to accomplish a “moneypass”.
SPECULATIVE POSITION LIMITS(a)Nadex has imposed Speculative Position Limits on certain Classes of Contracts
as defined in Chapter 12 of these Rules, subject to the exemption and Alternative
Position Limits for certain Market Makers defined in Rule 4.4(d). Any Trading
Member or FCM Customer who exceeds a Speculative Position Limit or, if
applicable, an Alternative Position Limit shall be deemed in violation of this Rule5.20. In addition, any Trading Member (except for approved Market Makers) or
FCM Customer entering bids or offers, if accepted, which would cause that Trading
Member or FCM Customer to exceed the applicable Speculative Position Limit
shall be in violation of this Rule. In the case of any violation of this Rule by a FCM
Customer, that Customer’s FCM Member shall be held directly responsible forsuch violation.

(b)

If a Member fails to reduce any position in a manner and time as directed by Nadex,
Nadex shall have the authority to liquidate the applicable position to a level below
61the defined Speculative Position Limit stipulated under the relevant Class ofContracts in Chapter 12 of these Rules or, if applicable, the Alternative Position
Limit pursuant to Rule 4.4(d).
(c)

In addition to the restrictions and requirements imposed in Section 5.20(a) and (b),the first violation of a Speculative Position Limit or Alternative Position Limit by aMember or FCM Customer may result in a letter of warning to be issued by the
Nadex Compliance Department to the Trading Member or FCM Customer and its
FCM Member or the initiation of proceedings in accordance with Chapter 9 ofthese rules.

(d)

In addition to the restrictions and requirements placed in Section 5.20(c), any
subsequent violation of a Speculative Position Limit or Alternative Position Limit
by a Trading Member or FCM Customer within 12 months after a violation that
resulted in a letter of warning, will result in the initiation of proceedings inaccordance with Chapter 9 of these Rules.

(e)Position limits shall apply to i) all positions in accounts for which any Person by
power of attorney or otherwise, directly or indirectly holds positions or controls
trading, and ii) positions held by two or more Persons acting pursuant to an
express or implied agreement or understanding the same as if the positions were
held by, or the trading of the position were done by, a single individual.
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62

CLEARING AND SETTLING CONTRACT TRADES, CONTRACTS AT EXPIRATION,
AND MEMBER WITHDRAWAL REQUESTS AND REGULATORY REPORTING OF SWAP DATA
CLEARANCE AND SUBSTITUTION(a)

In its capacity as a registered derivatives clearing organization, upon the
successful matching of orders pursuant to Rules 5.3 or 5.4 Nadex shallimmediately, through the process of novation, be substituted as, and assume theposition of, seller to the Member buying and buyer to the Member selling therelevant Nadex contract. Upon such substitution, the buying and selling Members
shall be released from their obligations to each other, and such Member shall bedeemed to have bought the contracts from or sold the contracts to Nadex, as thecase may be, and Nadex shall have all the rights and be subject to all the liabilities
of such Member with respect to such transaction. Such substitution shall beeffective in law for all purposes.
SETTLING CONTRACT TRADES(a)

Nadex will maintain, on its system, a record of each Member’s account balances
and Contracts and (b) each FCM Member’s Cleared Swaps Customer Account andCleared Swaps Proprietary Account balances and, by subaccount, the positions ofeach of its FCM Customers. Nadex will also maintain a “Nadex settlement
account,” which will reflect funds used by Members to buy and sell Contracts.
Nadex will also maintain a “Nadex proprietary account,” which will be credited withall fees debited from Member accounts due to trades and expiration settlements.
All settlements among these accounts on the Nadex system will be instantaneous.

(b)

All funds in Member accounts and in the Nadex settlement account will bemaintained in an account at the Nadex settlement bank that is designated as a
Cleared Swaps Customer Account under the CEA and the Commission’s
Regulations. Because those funds will be commingled at the settlement bank,transfers among Member accounts and transfers between Member accounts andthe Nadex settlement account will not be transmitted to the settlement bank. Such
records will only be maintained on the Nadex system. However, once every
settlement bank Business Day, Nadex will send to its settlement bank by batchmode electronic transmission instructions for the settlement bank to transfer fees
credited by Nadex to the Nadex proprietary account on its system from the Cleared
Swaps Customer Account at the settlement bank to the Nadex proprietary accountat the settlement bank.

(c)

The settlement bank will complete the transfer in the settlement instructions
described in paragraph (b) of this Rule and notify Nadex of its completion.
SETTLING CONTRACTS AT EXPIRATION
63

(a)

When a Series of Variable Payout Contracts expires, those Contracts will settle inan amount (if any) determined by the calculations set forth in the definitions forLong and Short Variable Payout Contracts set forth in Chapter 1 of these Rules.
When a Series of Binary Contracts expires and has a Payout Criterion thatencompasses the Expiration Value of the Underlying, such Binary Contract will pay
the Settlement Value for such Binary Contracts (e.g. $100) to the holders of longpositions in such Binary Contracts. Conversely, when a Series of Binary Contracts
expires and has a Payout Criterion that does NOT encompass the Expiration Valueof the Underlying, such Binary Contract will pay the Settlement Value for such
Binary Contracts (e.g. $100) to the holders of short positions in such Binary
Contracts.

(b)

On the Settlement Date;

(c)

(i)

Nadex will notify all Members which Contract is going to pay a Settlement
Value and which Contract will not pay a Settlement Value.

(ii)

Nadex will immediately settle the Variable Payout Contracts by (A) debiting
Nadex’s settlement account in an amount equal to (1) any gains realized
by Members (including customers of FCM Members) plus (2) any blocked
funds that were debited from Members’ accounts at the time the Variable
Payout Contracts that are expiring were entered into that are not used to
pay any losses on such Contract(s) and (B) crediting those amounts,
respectively, to the accounts of (1) Members who realized such gains, ineach case in the amount of such gains realized by each Member (including
Customers of FCM Members), and (2) Members from whose accounts
such blocked funds were taken, in each case in the amount of such blocked
funds that was not required to pay losses experienced by such accounts
on such Contracts.

(iii)

Nadex will immediately settle the Binary Contracts by debiting the Nadex’s
settlement account in an amount no less than the Settlement Value forsuch Contracts multiplied by the total number of outstanding in-the-money
Binary Contract positions and credit those funds to the applicablesettlement accounts of the Members holding the in-the- money Binary
Contract positions (or, in the case of Customers of FCM Members holding
the in-the-money Binary Contract positions, to the settlement account of
the FCM Member).

(iv)

Nadex will delete all Contracts of the expiring Series from Trading
Members’ accounts and FCM Customer Position Accounts, as applicable.

Any Person who believes there has been an error in settlement, must report thaterror to Nadex immediately. Such report must state the basis for the belief that64

there has been an error in settlement. If Nadex receives notice of a settlement error
within twenty-four hours of the settlement, excluding non- Trading Days, Nadex will
review that report and will correct any error that Nadex determines has been made.
If Nadex does not receive notice of an error of settlement within twenty-four hoursof the settlement, excluding non-Trading Days, then (i) settlement will be final and(ii) all Members agree that Nadex shall not be responsible to you in any fashion for
an uncorrected error in settlement, including, without limitation, errors resulting
from a calculation error, erroneous or incomplete data, and/or input of data, or
inaccurate collection of the settlement data set.
SETTLING MEMBER WITHDRAWAL REQUESTS
Within one settlement bank Business Day of when a Member requests to withdraw funds from its
Nadex account, Nadex will transmit such request to its settlement bank in electronic batch modetransmission. The settlement bank will process that request and send those funds to the accountat the Financial Institution as that term is defined in Rule 1.1, or Foreign Bank in the case of a nonUnited States resident Member who does not have an account at a US Financial Institution,
registered with Nadex by the Member (unless the Member and, in the case of FCM Members, any
FCM Customer of that FCM Member has unsatisfied outstanding obligations on Nadex, in whichcase Nadex may retain such balances as necessary to satisfy such obligations or until theMember otherwise satisfies such obligations). The Member should refer to Nadex’s website
under the Fee Schedule for all fees and costs associated with withdrawal of funds from theMember’s Nadex account. Nadex may suspend or deny the processing of a Member withdrawal
request if circumstances, whether present or imminent, would make the request impossible or
impractical to fulfill, cause a potential risk of harm to Nadex or its Members, or if, in its discretion,
Nadex determines the funds are relevant to a pending investigation.
REGULATORY REPORTING TO SWAP DATA REPOSITORY
In accordance with the CFTC Letter No 17-31 (“Letter”) issued by the Commodity Futures Trading
Commission Division of Clearing and Risk and Division of Market Oversight on June 30, 2017,
Nadex has been granted no-action relief with respect to various swap data reporting requirementsof Parts 43 and 45 of the Commission’s regulations for contracts traded on or pursuant to therules of, and cleared by, Nadex. Nadex will comply with all conditions of such relief as set forth inthat Letter.

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65

ADJUSTMENTS NECESSITATED BY MATERIAL CHANGES IN THE UNDERLYING
ADJUSTMENTS
In the event that, prior to or during the term of a Series, changes beyond the control of Nadex
occur in the availability of the Underlying, the way the Underlying is calculated or an Expiration
Value for the Underlying is unavailable or undefined in light of intervening events, Nadex may
delay listing a Series, adjust the terms of an outstanding Series, or take other action as it deems
appropriate in its discretion to achieve fairness to holders of Contracts of the affected Series. In
addition, if the outcome of the underlying event is unclear, Nadex may, at its sole discretion, delay
settlement of the Series until the outcome is clear to Nadex as determined by reasonable means.
While it is impossible to provide in advance for all possible events that could require an
adjustment to be made, Nadex will abide by any guidelines that may be established in this Chapter
for making Contract adjustments.
GOVERNMENT ACTIONS
Any change in instructions, order, ruling, directive, or law issued or enacted by any court or agencyof the Federal Government of the United States that conflicts with the Rules contained in this
Chapter shall take precedence, immediately become a part of these Rules, and be effective for all
currently traded and newly listed Series.

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INVESTMENT OF MEMBER ACCOUNT FUNDS
Direct Trading Member funds on deposit with Nadex and funds in the Nadex settlement account(i.e., the account containing the funds paid by Members to purchase Contracts and which are to
be used to pay Members holding in-the-money Contracts at expiration) will be segregated as
Member Property, as that term is defined in in CFTC Regulation 190.09(a), in cleared swap
proprietary accounts, and funds of Cleared Swap Customers will be segregated as cleared swaps
customer collateral in accordance with the Commission’s Regulations. Nadex may invest suchfunds subject to the limitations and conditions set forth in Commission Regulations 22.2(e)(1)
and 1.25. Nadex may pay interest to Members’ accounts at a floating rate to be determined by
Nadex on funds in Members’ Nadex accounts in excess of an amount to be determined by Nadex.
Nadex will retain all profit from investment of Member funds not paid to Members in accordancewith the preceding sentence.
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67

RULE ENFORCEMENTMONITORING THE MARKET
Nadex’s trading system will record and store for a period of not less than 5 years in a searchable,
read- only database a record of all data entered into the Nadex trading system, including theMember’s identity and the information in Rule 5.5. Such records shall be maintained in a readily
available manner during the first two years. Nadex shall conduct market surveillance and tradepractice surveillance using this data with programs designed to alert Nadex when potentiallyunusual trading activity takes place. Nadex will initiate review and, where appropriate, investigate
such unusual trading activity. Nadex will also investigate any time it has other reason to believethat inappropriate activity of any sort is taking place on the Market or its website.
INVESTIGATIONS, HEARINGS, AND APPEALS(a)

Nadex has a compliance department consisting of one or more compliance staff.
The Chief Regulatory Officer is responsible for overseeing the compliancedepartment. The Compliance Department shall investigate unusual trading activity
or other activity that the Compliance Department has reasonable cause to believe
could constitute a violation of these Rules. Investigations and all information anddocuments collected or obtained in connection with an investigation which were
not made public prior to the commencement of the investigation shall be treatedas non-public and confidential and shall not be disclosed by any party, except infurtherance of a Nadex investigation, or as required by law or regulation, or asotherwise agreed to by Nadex. Nadex retains hearing officers, who adjudicate
findings by the Compliance Department that are disputed by Members. Hearing
officers and the Compliance Department may not communicate regarding themerits of a matter brought before the hearing officer without informing theMember who is the subject of the communication of its substance and allowing
the Member an opportunity to respond. The Compliance Department and hearing
officers may compel testimony, subpoena documents, and require statements
under oath from any Member or its authorized representative. Hearing officers,
Compliance Department staff and other employees or agents of Nadex working
under their supervision, may not be a Member or an authorized representative ofa Member or trade, directly or indirectly, in any commodity interest traded on or
subject to the rules of any registered contract market.

(b)

The Compliance Department will endeavor to complete any investigation withintwelve months, unless there exists significant reason to extend it beyond such
period. Upon the conclusion of any investigation, the Compliance Department willdraft a document detailing the facts that led to the opening of the investigation,
the facts that were found during the investigation, and the ComplianceDepartment’s analysis and conclusion. If the Compliance Department concludes
68that there is reasonable cause to believe a Member has violated Nadex’s Rules orother applicable statutes or regulations, the Compliance Department will submit
by to the Member whose activity is the subject of the investigation a report, byelectronic mail to that Member’s last known email address, that will include:(i)the reason the investigation was begun;(ii)

the charges or a summary of the charges, including the rule or rules alleged
to have been violated;(iii)

the response, if any, or a summary of the response;(iv)

a summary of the investigation conducted;(v)

findings of fact and the Compliance Department’s conclusions as to eachcharge, including which of these Rules the Member or its authorized
representative violated, if any;(vi)

a summary of the Member’s, and any relevant authorized representative’s,
disciplinary history, if any; and(vii)

the penalty, if any, proposed by the Compliance Department.

(c)

If the Compliance Department institutes an investigation in which any Affiliate ofNadex is a subject, Nadex’s Chief Regulatory Officer shall notify the Commission’s
Division of Market Oversight of that fact. At the conclusion any such investigation,
the Chief Regulatory Officer shall provide the Commission’s Division of Market
Oversight with a copy of the documentation specified in subparagraph of this Rule.

(d)

The Member whose activity is the subject of the investigation may contest theCompliance Department’s findings by forwarding a response to those findings byelectronic mail to the Compliance Department within 15 days. Subject to
subparagraph (a) of this Rule, the Member has a right to examine all relevantbooks, documents, or other evidence in the possession or under the control ofNadex, except that Nadex may withhold from inspection any documents that (i)are privileged or that constitute attorney work product, (ii) were prepared by any
employee of Nadex but which will not be offered in evidence in the disciplinary
proceedings, (iii) may disclose a technique or guideline used in examinations,investigations, or enforcement proceedings, or (iv) disclose the identity of aconfidential source. The Member’s response must contain a detailed response to
the findings and conclusions as to each charge and any other information theMember thinks is relevant.

69

(e)

The Member whose activity is the subject of the investigation may request to enter
settlement negotiations by forwarding a response to the ComplianceDepartment’s findings by electronic mail to the Compliance Department within 15
days. Subject to subparagraph (a) of this Rule, the Member has a right to examine
all relevant books, documents, or other evidence in the possession or under thecontrol of Nadex, except that Nadex may withhold from inspection any documentsthat (i) are privileged or that constitute attorney work product, (ii) were preparedby any employee of Nadex but which will not be offered in evidence in thedisciplinary proceedings, (iii) may disclose a technique or guideline used in
examinations, investigations, or enforcement proceedings, or (iv) disclose theidentity of a confidential source. The Member’s response must contain a responseto each charge and the Member may provide any other information the Member
thinks is relevant. The outcome of settlement negotiations between the Member
and the Compliance Department may include, but is not limited to, a letter of
warning.

(f)

If the findings of the Compliance Department are not contested by the Member,
Nadex will deem those findings admitted by the Member, the findings of fact andthe Compliance Department’s conclusions as to each charge shall become final
and the Compliance Department shall impose the penalty (if any) proposed by theCompliance Department. The Member will be notified of the imposition of any
penalty and sent a copy of the notice of disciplinary action by electronic mail tothat Member’s last known email address.

(g)

If the findings of the Compliance Department are contested, the ComplianceDepartment’s report and the Member’s response contesting the ComplianceDepartment’s findings and/or proposed sanction(s) will be submitted to a Nadex
hearing officer. The hearing officer may not have a financial, personal or otherdirect interest in the matter under consideration.
(i)

The hearing officer will conduct a hearing with the Compliance Department
and the Member promptly following receipt of the Member’s responsecontesting the compliance officer’s finding and/or proposed sanction
which the parties may attend telephonically. The Member respondent shallbe provided reasonable notice of the hearing date. The hearing officer or
the Compliance Department may extend the hearing date at its discretionfor good cause shown, or by the parties’ mutual consent. The formal rulesof evidence shall not apply, but the hearing must be fair.

(ii)

At least 28 days in advance of a hearing, the Member respondent shallsubmit to the Compliance Department, and the Compliance Department
shall submit to the Member respondent, copies of all books, documents,
records and other tangible evidence, which each plans to rely on or refer to70during its direct case at the hearing, and provide a list of the names andtitles of witnesses that each plans to call on its direct case at the hearing.
The hearing officer may refuse to consider any books, records, documents
or other tangible evidence which was not made available to, or witnesses
whose names and titles were not submitted to, the other party pursuant tothis section. To the extent the Compliance Department or the Member
respondent intends to call any expert witness at the hearing then suchparty shall provide to the other, at least 28 days prior to the date of thehearing, a summary of the expert’s opinions to be offered at the hearing
and the basis and/or methodology underlying such opinions. In addition,
the expert’s credentials (e.g., a curriculum vitae) and all documents or othermaterials on which the expert relied in forming his opinions shall be
produced to the other party at the same time. For purposes of thisprovision, staff in the Compliance Department or other Nadex employee
shall not be considered experts. The hearing officer may decline toconsider any expert testimony beyond the scope of the submitted
summary. conclusions;(iii)

The hearing officer may question the parties or any witness during thehearing, request additional documentation or information from any party,
and/or request post- hearing briefs from the parties.

(iv)

Promptly after that hearing, the hearing officer will issue findings, which
will be delivered to the Member by electronic mail to the Member’s last
known email address. The findings of the hearing officer will contain thefollowing information:(1)

a summary of the charges and any answer to the charges;(2)

a summary of the evidence received;(3)

findings and conclusions with respect to each charge;(4)

an indication of each specific rule that the member was found tohave violated;(5)

a declaration of any penalty to be imposed on the Member as theresult of the findings and(6)

the effective date and duration of that penalty; and(7)a statement that the Member has the right to appeal any adverse
decision by the hearing officer to the Nadex board of directors, butmust do so within 15 days.
71

(h)

(v)

The hearing officer’s decision shall be final on the date it is signed by thehearing officer. The hearing officer’s decision shall become the final
decision of Nadex after the appeal period has lapsed.

(vi)

The hearing will be recorded, and all information submitted by the parties(including the Compliance Department’s report and the Member’s
response) as well as the recording of the hearing, will be preserved by theCompliance Department, along with the hearing officer’s findings, as therecord of the proceedings (the “hearing record”).

Either the Member or the Compliance Department may appeal the decision of thehearing officer within 15 days by filing an appeal by electronic mail with the Nadex
board of directors and forwarding a copy to the other parties to the appeal. Any
penalties will be stayed pending appeal unless the hearing officer determines thata stay pending appeal would likely be detrimental to the exchange, other Members,
or the public. The board of directors will review the hearing record and any
information submitted by the Compliance Department and the Member on appeal
and issue its decision, which shall be final on the date of such issuance. The
Member shall be notified of the decision by electronic mail to the Member’s last
known email address. The hearing record, any information submitted on appeal,
and the board’s decisions shall be preserved as the record on appeal. The decision
will contain the information listed in paragraph (f) of this Rule, except for (f)(vi),and will also contain:(i)a statement that any person aggrieved by the action may have a right toappeal the action pursuant to Part 9 of the Commission’s Regulations,
within 30 days of service; and(ii)a statement that any person aggrieved by the action may petition theCommission for a stay pursuant to Part 9 of the Commission’s Regulations,
within 10 days of service.

SETTLEMENT OF INVESTIGATIONS(a)Nadex may enter into settlements with any Member or its authorized
representative who is the subject of an investigation. The Member, or its
authorized representative may initiate a settlement offer. A Member, or its
authorized representative, may submit an offer of settlement without admitting or
denying the Rule violations or factual findings upon which the penalty is based,
provided, however, that an offer must include a consent to the entry of findings
regarding the conduct and Rule violations at issue, to the penalty to be imposed
and to the effective date of the penalty. A settlement offer that is supported by theCompliance Department shall be forwarded to a Nadex hearing officer forconsideration, along with the Compliance Department’s supporting statement.
72

The hearing officer may accept, accept with modifications, or reject a proposed
settlement offer. A settlement offer may be withdrawn at any time before it isaccepted by the hearing officer.
(b)

The hearing officer may accept or reject a proposed settlement, and the decisionof the hearing officer will be final. In addition, the hearing officer may propose amodification to the proposed settlement for consideration by the Member or its
authorized representative and the Compliance Department.

(c)

Any settlement under this Rule will be written and will state:

(d)

(i)

the charges or a summary of the charges;(ii)

the response, if any, or a summary of the response;(iii)

a summary of the investigation conducted;(iv)

findings and conclusions as to each charge, including each act the person
charged was found to have committed or omitted, be committing oromitting, or be about to commit or omit, and each of these Rules that suchact or practice violated, is violating, or is about to violate; and(v)

any penalty imposed and the penalty’s effective date.

Failed settlement negotiations, or withdrawn settlement offers, will not prejudicea Member or otherwise affect subsequent procedures in the rule enforcement
process.
NOTICE AND PUBLICATION OF DISCIPLINARY ACTION(a)

Nadex will provide to the person charged, notice of the disciplinary action, appeal
determination, or settlement in which sanctions are imposed, no later than two
Business Days after it becomes final in accordance with the provisions ofCommission Regulation 39.19(c)(4)(xi).

(b)

Within two Business Days after a disciplinary action becomes final, notice of any
disciplinary action outcome providing that a Member is suspended, expelled,
disciplined or denied access to the Exchange shall be provided to the National
Futures Association for inclusion in its internet accessible database of disciplinary
matters.

(c)

Nadex will make public notice of the disciplinary action by posting on its website,in accordance with Commission Regulation 9.13, the information required byCommission Regulation 9.11. The disciplinary action will be considered final on
the date the notice of the disciplinary action is published on the Nadex website.
73

PENALTIESAs a result of a disciplinary proceeding or as part of a settlement, Nadex may impose one or moreof the following penalties:(a)a letter of warning, censure, or reprimand (although no more than one such lettermay be issued to the same Person found to have committed the same ruleviolation within a rolling twelve month period);(b)a fine or penalty fee, which Nadex may deduct from the Member’s accountbalance;(c)disgorgement of profits that resulted from the violation of any Nadex Rule, which
Nadex may deduct from the Member’s account balance;(d)suspension of membership status or privileges for a specified period, including
partial suspension of such privileges (for example, suspension of trading
privileges in particular types of Contracts or of placement of certain types oforders);(e)

revocation of membership status or privileges, including partial revocation of suchprivileges (for example, revocation of trading privileges in particular types ofContracts or of placement of certain types of orders); and(f)interest, at the prime rate, as reported by the Wall Street Journal as of the date theamount becomes due, on any outstanding account balance, monetary fine, penalty
fee, or disgorgement amount owed, compounded monthly and calculated from thedate when the amount was first due and payable.
SUMMARY SUSPENSION(a)

Nadex may summarily suspend or restrict a Member (or any of its Authorized
Traders or, in the case of FCM Members, its customers) privileges if the Chief
Regulatory Officer believes suspension or restriction is necessary to protect theswaps or commodity futures markets, Nadex, the public, or other Members.

(b)

Whenever practicable Nadex will notify the Member whose privileges are to besummarily suspended by electronic mail before the action is taken. If prior notice
is not practicable, the Member shall be served with notice by electronic mail at theearliest opportunity. This notice shall:(i)state the action taken or to be taken;(ii)

briefly state the reasons for the action;

74

(c)

(iii)

state the time and date when the action became or becomes effective andits duration; and(iv)

state that any person aggrieved by the action may petition the Commission
for a stay of the effective date of the action pending a hearing pursuant toPart 9 of the Commission’s Regulations, within 10 days of service.

The Member (or Authorized Trader or customer of an FCM Member) whose
privileges are to be summarily suspended shall be given an opportunity for appeal
under the procedures outlined in Rule 9.2(f) of these Rules. The decision affirming,
modifying, or reversing the summary suspension shall be furnished by electronic
mail to the suspended Member or Authorized Trader or, with respect to a FCM
Customer, to the FCM Member, and the Commission no later than one BusinessDay after it is issued. The decision shall contain:(i)a description of the action taken and the reasons for the action;(ii)

a brief summary of the evidence received during the appeal process;(iii)

findings and conclusions;(iv)

a determination as to whether the summary action that was taken shouldbe affirmed, modified, or reversed;(v)

a declaration of any action to be taken against the suspended Member as
the result of that determination;(vi)

the effective date and duration of that action; conclusions;(vii)

a determination of the appropriate relief based on the findings and(viii)

a statement that any person aggrieved by the action may have a right toappeal the action pursuant to Part 9 of the Commission’s Regulations,
within 30 days of service; and(ix)a statement that any person aggrieved by the action may petition theCommission for a stay pursuant to Part 9 of the Commission’s Regulations,
within 10 days of service.

REPRESENTATION BY COUNSELA Member, Authorized Trader or FCM Customer who is a subject of any proceedings under this
Chapter has the right to retain and be represented by counsel during such proceedings.

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LIMITATION OF LIABILITY; TIME PERIOD IN WHICH TO BRING ACTIONS;GOVERNING LAW; ARBITRATION
LIMITATION OF LIABILITY(a)

EACH MEMBER OF NADEX AGREES THAT NEITHER NADEX NOR ITS OFFICERS,DIRECTORS, AGENTS, EMPLOYEES, AND/OR SOFTWARE, HARDWARE, ANDSERVICE PROVIDERS (COLLECTIVELY REFERRED TO AS “NADEX PARTIES”)
SHALL HAVE ANY RESPONSIBILITY FOR COMPLIANCE BY MEMBER WITH ANYLAW OR REGULATION GOVERNING MEMBER’S CONDUCT. MOREOVER, EACH
MEMBER OF NADEX ALSO AGREES THAT NO NADEX PARTY SHALL BE LIABLE IN
ANY MANNER WHATSOEVER FOR ANY LOSS OR DAMAGE SUSTAINED BYMEMBER, INCLUDING ANY CONSEQUENTIAL LOSS, LOSS OF PROFIT OR LOSS OF
TRADING OPPORTUNITY, AS A RESULT OF ANY ACTUAL OR PROPOSED
TRANSACTIONS OR AS A DIRECT OR INDIRECT RESULT OF ANY SERVICESPROVIDED BY NADEX PARTIES (INCLUDING, WITHOUT LIMITATION, ANY
FAILURE IN NADEX’S SYSTEMS OR ANY INACCURATE INFORMATION PROVIDED
BY A NADEX PARTY), UNLESS THE RELEVANT NADEX PARTY IS DETERMINED BY
FINAL RULING OF AN ARBITRATION PROCEEDING TO HAVE ACTED OR FAILEDTO ACT IN A MANNER THAT IS GROSSLY NEGLIGENT, RECKLESS, OR
FRAUDULENT. FOR THE AVOIDANCE OF DOUBT, NOTHING IN THIS RULE IS
INTENDED TO LIMIT THE LIABILITY OF ANY PERSON AS MAY BE PROVIDED IN
THE CEA, THE REGULATIONS OF THE COMMISSION, OR BY ACTS OF WILLFUL OR
WANTON MISCONDUCT OR FRAUD.

(b)

EACH MEMBER OF NADEX AGREES THAT IT MAY NOT BRING ANY ACTIONAGAINST A NADEX PARTY UNLESS IT BRINGS SUCH ACTION WITHIN 2 YEARSOF THE FIRST OCCURRENCE OR LACK OF OCCURRENCE OF THE ACT OROMISSION COMPLAINED OF.

(c)

EACH MEMBER OF NADEX AGREES THAT ANY ACTION IT BRINGS AGAINST A
NADEX PARTY WILL BE GOVERNED BY ILLINOIS LAW, WITHOUT REGARD TO
STATUTES, PRECEDENT, LEGAL DOCTRINE, OR CONTRACTUAL PROVISIONSTHAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF A DIFFERENTJURISDICTION.

(d)

EACH MEMBER OF NADEX AGREES THAT ANY ACTION IT BRINGS AGAINST A
NADEX PARTY OR AGAINST ANOTHER NADEX MEMBER WILL BE RESOLVED BY
BINDING ARBITRATION, IN ACCORDANCE WITH THE RULES OF THIS CHAPTERAND OTHER RULES OF NADEX, IF APPLICABLE.
ARBITRATION OF MEMBER-MEMBER DISPUTES

77

Any dispute, controversy, or claim between or among Members arising out of or relating totransactions on Nadex shall be submitted to binding arbitration in Cook County, Illinois before,
and according to the Member arbitration rules of, National Futures Association. The decision of
the arbitrator or arbitrators will be final, and judgment upon that decision may be entered in any
court of competent jurisdiction. Unless the arbitrator or arbitrators find that one of the parties has
acted in bad faith, each party will pay its own expenses.
ARBITRATION OF NADEX-MEMBER DISPUTES
Any dispute, controversy, or claim brought against Nadex by any Member shall be submitted tobinding arbitration in Cook County, Illinois. Unless the arbitrator or arbitrators find that one of theparties has acted in bad faith, each party will pay its own expenses. Upon request of either party
the arbitrator or arbitrators will make a finding as to whether Nadex has acted in a manner that isgrossly negligent, reckless, or fraudulent.
ARBITRATION OF FCM MEMBER-CUSTOMER DISPUTES
Any dispute, controversy, or claim brought against any FCM Member by a customer may besubmitted to binding arbitration in Cook County, Illinois before, and according to the customer
arbitration rules of, National Futures Association. The decision of the arbitrator or arbitrators will
be final, and judgment upon that decision may be entered in any court of competent jurisdiction.
Unless the arbitrator or arbitrators find that one of the parties has acted in bad faith, each party
will pay its own expenses.
FAILURE TO ABIDE BY ARBITRATION DECISION
It will be a violation of the Nadex Rules for a Member to fail to pay an award or otherwise satisfy
or abide by a judgment in arbitration, and Nadex may take disciplinary action against any such
Member, including suspension or revocation of Membership.
RULE 10.6 CHANGE IN ARBITRATION PROCEDURE
Nadex will file all changes to its arbitration procedure with the Commission.
Remainder of page left blank78

COMMISSION REGULATIONS THAT HAVE BEEN ADAPTED TO BE PART OF THE
RULES
The following Rules are adaptations of regulations adopted by the Commission. They must be
followed by Members and Nadex itself, and any violation of these regulations will be a punishable
violation of the Rules.
ACTIVITIES OF SELF-REGULATORY ORGANIZATION EMPLOYEES AND
GOVERNING MEMBERS WHO POSSESS MATERIAL, NON-PUBLIC INFORMATION(ADAPTED FROM COMMISSION REGULATION 1.59)(a)Definitions. For purposes of this Rule:(i)

Self-regulatory organization means “self-regulatory organization,” asdefined in Commission regulation 1.3(ee), and includes the term “clearingorganization,” as defined in Commission regulation 1.3(d).

(ii)

Governing board member means a member, or functional equivalent
thereof, of the board of governors of a self-regulatory organization.

(iii)

Committee member means a member, or functional equivalent thereof, of
any committee of a self-regulatory organization.

(iv)

Employee means any person hired or otherwise employed on a salaried orcontract basis by a self-regulatory organization, but does not include:

(v)

(1)

Any governing board member compensated by a self-regulatoryorganization solely for governing board activities; or(2)

Any committee member compensated by a self-regulatoryorganization solely for committee activities; or(3)

Any consultant hired by a self-regulatory organization.

Material information means information which, if such information were
publicly known, would be considered important by a reasonable person in
deciding whether to trade a particular commodity interest on a contract
market or a swap execution facility, or to clear a swap contract through aderivatives clearing organization. As used in this Rule, “material
information” includes, but is not limited to, information relating to present
or anticipated cash positions, commodity interests, trading strategies, thefinancial condition of members of self-regulatory organizations or
members of linked exchanges or their customers or option customers, or
the regulatory actions or proposed regulatory actions of a self-regulatoryorganization or a linked exchange.
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(vi)

Non-public information means information which has not been
disseminated in a manner which makes it generally available to the trading
public.

(vii)

Linked exchange means:(1)

any board of trade, exchange or market outside the United States,
its territories or possessions, which has an agreement with acontract market in the United States that permits positions in acommodity interest which have been established on one of the twomarkets to be liquidated on the other market;(2)

any board of trade, exchange or market outside the United States,
its territories or possessions, the products of which are listed on a
United States contract market or a trading facility thereof; or(3)

any securities exchange, the products of which are held as margin
in a commodity account or cleared by a securities clearingorganization pursuant to a cross-margining arrangement with afutures clearing organization; or(4)

any clearing organization which clears the products of any of theforegoing markets.

(viii)

Commodity interest means any commodity futures or commodity option
or swap contract traded on or subject to the rules of a contract market,
swap execution facility, or linked exchange, or cleared by a derivatives
clearing organization, or cash commodities traded on or subject to therules of a board of trade which has been designated as a contract market.

(ix)

Related commodity interest means any commodity interest which is tradedon or subject to the rules of a contract market, a swap execution facility,
linked exchange, or other board of trade, exchange or market, or cleared bya derivatives clearing organization, other than the self-regulatoryorganization by which a person is employed, and with respect to which:(1)

Such employing self-regulatory organization has recognized or
established intermarket spread margins or other special margin
treatment between that other commodity interest and a commodity
interest which is traded on or subject to the rules of the employing
self-regulatory organization; or(2)Such other self-regulatory organization has recognized or
established intermarket spread margins or other special margin80treatment with another commodity interest as to which the person
has access to material, nonpublic information.
(x)

(b)

Pooled investment vehicle means a trading vehicle organized and operated
as a commodity pool within Commission Regulation 4.10(d), and whose
units of participation have been registered under the Securities Act of 1933,
or a trading vehicle for which Commission Regulation 4.5 makes available
relief from regulation as a commodity pool operator, i.e., registeredinvestment companies, insurance company separate accounts, bank trust
funds, and certain pension plans.

Employees of self-regulatory organizations; Self-regulatory organization rules.
(i)

(ii)

Employees of Nadex are prohibited from:(1)

trading, directly or indirectly, in any commodity interest traded on or
cleared by Nadex or in any related commodity interest;(2)

trading directly or indirectly in any commodity interest traded on or
cleared by contract markets, swap execution facility, or clearingorganizations other than Nadex and in any commodity interest
traded on or cleared by a linked exchange if the employee hasaccess to material non- public information concerning suchcommodity interest.

Employees of Nadex are prohibited from disclosing to any other person any
material, non-public information which such employee obtains as a resultof his or her employment at Nadex where such employee has or shouldhave a reasonable expectation that the information disclosed may assist
another person in trading any commodity interest; however, this Rule does
not prohibit disclosures made in the course of an employee’s duties, ordisclosures made to another self-regulatory organization, linked exchange,
court of competent jurisdiction or representative of any agency ordepartment of the federal or state government acting in his or her official
capacity.

(c)Members of Nadex’s governing boards and committees and Nadex consultants;
Nadex’s Rules. No member of Nadex’s governing board or of a committee ofNadex and no Nadex consultant shall use or disclose, for any purpose other thanthe performance of such person’s official duties as a governing board orcommittee member or consultant, material, non-public information obtained as aresult of such person’s official duties.

(d)

Prohibited conduct.
81

(i)

(ii)

No person who is an employee of, a member of the governing board of, ora member of any committee of, or a consultant of Nadex shall:(1)

Trade for such person’s own account, or for or on behalf of any
other account, in any commodity interest on the basis of any
material, non-public information obtained through special access
related to the performance of such person’s official duties as an
employee, board or committee member, or consultant; or(2)

Disclose for any purpose inconsistent with the performance of such
person’s official duties as an employee, board or committee
member, or consultant, any material, non-public information
obtained through special access related to the performance ofsuch duties.

No person shall trade for such person’s own account, or for or on behalf of
any account, in any commodity interest, on the basis of any material, nonpublic information that such person knows was obtained in violation ofparagraph (d)(1) from an employee of, a member of the governing boardof, a member of any committee, or a consultant of a self-regulatoryorganization.

SERVICE ON SELF-REGULATORY ORGANIZATION GOVERNING BOARDS ORCOMMITTEES BY PERSONS WITH DISCIPLINARY HISTORIES (ADAPTED FROMCOMMISSION REGULATION 1.63)(a)Definitions. For purposes of this section:(i)

Self-regulatory organization means a “self-regulatory organization” asdefined in Commission Regulation 1.3(ee), and includes a “clearingorganization” as defined in Commission Regulation 1.3(d), except as
defined in paragraph (b)(6) of this Rule.

(ii)

Disciplinary committee means any person or committee of persons, or any
subcommittee thereof, that is authorized by a self-regulatory organization
to issue disciplinary charges, to conduct disciplinary proceedings, to settle
disciplinary charges, to impose disciplinary sanctions or to hear appeals
thereof.

(iii)

Arbitration panel means any person or panel empowered by a selfregulatory organization to arbitrate disputes involving such organization’s
members or their customers.

82

(iv)

Oversight panel means any panel authorized by a self-regulatoryorganization to review, recommend or establish policies or procedureswith respect to the self-regulatory organization’s surveillance, compliance,rule enforcement or disciplinary responsibilities.

(v)

Final decision means:

(vi)

(1)

A decision of a self-regulatory organization which cannot be further
appealed within the self-regulatory organization, is not subject tothe stay of the Commission or a court of competent jurisdiction,and has not been reversed by the Commission or any court ofcompetent jurisdiction; or,(2)

Any decision by an administrative law judge, a court of competentjurisdiction or the Commission which has not been stayed orreversed.

Disciplinary offense means:(1)

Any violation of the rules of a self-regulatory organization except
those rules related to;A.

Decorum or attire,

B.

Financial requirements, orC.

Reporting or recordkeeping unless resulting in fines
aggregating more than $5,000 within any calendar year;(2)

Any rule violation described in subparagraphs (a)(6)(i) (A) through(C) of this Rule which involves fraud, deceit or conversion or results
in a suspension or expulsion;(3)

Any violation of the Act or the regulations promulgated thereunder;(4)

Any failure to exercise supervisory responsibility with respect toacts described in paragraphs (a)(6)(i) through (iii) of this Rule whensuch failure is itself a violation of either the rules of a self-regulatoryorganization, the Act or the regulations promulgated thereunder; or(5)

A disciplinary offense must arise out of a proceeding or action
which is brought by a self-regulatory organization, the Commission,
any federal or state agency, or other governmental body.

83

(vii)(b)

Settlement agreement means any agreement consenting to the impositionof sanctions by a self-regulatory organization, a court of competentjurisdiction or the Commission.

A person is ineligible to serve on any Nadex disciplinary committees, arbitration
panels, oversight panels or governing board if that person:(i)

Was found within the prior three years by a final decision of a selfregulatory organization, an administrative law judge, a court of competentjurisdiction or the Commission to have committed a disciplinary offense;(ii)

Entered into a settlement agreement within the prior three years in which
any of the findings or, in the absence of such findings, any of the acts
charged included a disciplinary offense;(iii)

Currently is suspended from trading on any contract market, is suspended
or expelled from membership with any self-regulatory organization, isserving any sentence of probation or owes any portion of a fine imposed
pursuant to either:(1)

A finding by a final decision of a self-regulatory organization, an
administrative law judge, a court of competent jurisdiction or theCommission that such person committed a disciplinary offense; or,(2)

A settlement agreement in which any of the findings or, in theabsence of such findings, any of the acts charged included a
disciplinary offense.

(iv)

Currently is subject to an agreement with the Commission or any selfregulatory organization not to apply for registration with the Commission
or membership in any self-regulatory organization;(v)

Currently is subject to or has had imposed on him within the prior three
years a Commission registration revocation or suspension in any capacity
for any reason, or has been convicted within the prior three years of any of
the felonies listed in section 8a(2)(D) (ii) through (iv) of the Act; or(vi)Currently is subject to a denial, suspension or disqualification from servingon the disciplinary committee, arbitration panel or governing board of any
self-regulatory organization as that term is defined in section 3(a)(26) of
the Securities Exchange Act of 1934.

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(c)

No person may serve on a disciplinary committee, arbitration panel, oversightpanel or governing board of Nadex if such person is subject to any of theconditions listed in paragraphs (b) (1) through (6) of this Rule.

(d)

Nadex shall submit to the Commission a schedule listing all those rule violations
which constitute disciplinary offenses as defined in paragraph (a)(6)(i) of this Ruleand to the extent necessary to reflect revisions shall submit an amended schedule
within thirty days of the end of each calendar year. Nadex must maintain and keep
current the schedule required by this section, post the schedule in a public placedesigned to provide notice to members and otherwise ensure its availability to thegeneral public.

(e)

Nadex shall submit to the Commission within thirty days of the end of eachcalendar year a certified list of any persons who have been removed from its
disciplinary committees, arbitration panels, oversight panels or governing board
pursuant to the requirements of this regulation during the prior year.

(f)Whenever Nadex finds by final decision that a person has committed a disciplinary
offense and such finding makes such person ineligible to serve on that selfregulatory organization’s disciplinary committees, arbitration panels, oversightpanels or governing board, Nadex shall inform the Commission of that finding andthe length of the ineligibility in any notice it is required to provide to theCommission pursuant to either section 17(h)(1) of the Act or Commission
Regulation 9.11.
VOTING BY INTERESTED MEMBERS OF SELF-REGULATORY ORGANIZATIONGOVERNING BOARDS AND VARIOUS COMMITTEES (ADAPTED FROMCOMMISSION REGULATION 1.69)(a)Definitions. For purposes of this section:(i)

Disciplinary committee means any person or committee of persons, or any
subcommittee thereof, that is authorized by Nadex to issue disciplinary
charges, to conduct disciplinary proceedings, to settle disciplinary charges,
to impose disciplinary sanctions, or to hear appeals thereof in cases
involving any violation of the Rules of Nadex except those cases where theperson or committee is authorized summarily to impose minor penalties
for violating Rules regarding decorum, attire, the timely submission of
accurate records for clearing or verifying each day’s transactions or othersimilar activities.

(ii)

Family relationship of a person means the person’s spouse, former spouse,
parent, stepparent, child, stepchild, sibling, stepbrother, stepsister,
grandparent, grandchild, uncle, aunt, nephew, niece or in-law.
85

(b)

(iii)

Governing board means Nadex’s board of directors, board of governors,
board of managers, or similar body, or any subcommittee thereof, duly
authorized, pursuant to a rule of Nadex that has been approved by theCommission or has become effective pursuant to Section 5c(c) of the Act
and Part 40 of the Commission Regulations to take action or torecommend the taking of action on behalf of Nadex.

(iv)

Oversight panel means any panel, or any subcommittee thereof, authorized
by Nadex to recommend or establish policies or procedures with respect
to Nadex’s surveillance, compliance, rule enforcement, or disciplinary
responsibilities.

(v)

Member’s affiliated firm is a firm in which the member is a “principal,” asdefined in Commission Regulation 3.1(a), or an employee.

(vi)Named party in interest means a person or entity that is identified by nameas a subject of any matter being considered by a governing board,
disciplinary committee, or oversight panel.

(vii)

Self-regulatory organization means a “self-regulatory organization” asdefined in Commission Regulation 1.3(ee) and includes a “clearingorganization” as defined in Commission Regulation 1.3(d), but excludes
registered futures associations for the purposes of paragraph (b)(2) of thissection.

(viii)

Significant action includes any of the following types of Nadex actions orrule changes that can be implemented without the Commission’s priorapproval:(1)

Any actions or rule changes which address an “emergency” asdefined in Commission Regulation 40.1; and,(2)

Any changes in margin levels that are designed to respond to
extraordinary market conditions such as an actual or attempted
corner, squeeze, congestion or undue concentration of positions, orthat otherwise are likely to have a substantial effect on prices in any
contract traded or cleared at Nadex; but does not include any rule
not submitted for prior Commission approval because such rule isunrelated to the terms and conditions of any contract traded at
Nadex.

Nadex Rules. Nadex shall maintain in effect Rules that have been submitted to theCommission pursuant to Section 5c(c) of the Act and Part 40 of the Commission

86Regulations to address the avoidance of conflicts of interest in the execution ofits self-regulatory functions. Such Rules must provide for the following:(i)Relationship with named party in interest—(1)

Nature of relationship. A member of Nadex’s governing board,
disciplinary committee or oversight panel must abstain from suchbody’s deliberations and voting on any matter involving a named
party in interest where such member:A.

Is a named party in interest;

B.

Is an employer, employee, or fellow employee of a named
party in interest;C.

Is associated with a named party in interest through a“broker association” as defined in Commission Regulation
156.1;

D.

Has any other significant, ongoing business relationshipwith a named party in interest, not including relationships
limited to executing futures or option transactions opposite
of each other or to clearing futures or option transactions
through the same clearing member; orE.

Has a family relationship with a named party in interest.

(2)

Disclosure of relationship. Prior to the consideration of any matter
involving a named party in interest, each member of a Nadex
governing board, disciplinary committee or oversight panel must
disclose to the appropriate Nadex staff whether he or she has oneof the relationships listed in paragraph (b)(1)(i) of this Rule with a
named party in interest.

(3)

Procedure for determination. Nadex must establish procedures fordetermining whether any member of its governing board,
disciplinary committees or oversight committees is subject to aconflicts restriction in any matter involving a named party ininterest. Taking into consideration the exigency of the committee
action, such determinations should be based upon:A.

Information provided by the member pursuant to paragraph(b)(1)(ii) of this Rule; and available to Nadex.

87

B.

(ii)

Any other source of information that is held by andreasonably

Financial interest in a significant action—(1)

Nature of interest. A member of a Nadex governing board,
disciplinary committee or oversight panel must abstain from suchbody’s deliberations and voting on any significant action if themember knowingly has a direct and substantial financial interest in
the result of the vote based upon either exchange or non-exchange
positions that could reasonably be expected to be affected by theaction.

(2)Disclosure of interest. Prior to the consideration of any significant
action, each member of a Nadex governing board, disciplinarycommittee or oversight panel must disclose to the appropriate
Nadex staff the position information referred to in paragraph(b)(2)(iii) of this Rule that is known to him or her. This requirement
does not apply to members who choose to abstain fromdeliberations and voting on the subject significant action.

(3)

Procedure for determination. Nadex must establish procedures fordetermining whether any member of its governing board,
disciplinary committees or oversight committees is subject to aconflicts restriction under this section in any significant action.
Such determination must include a review of:A.

Gross positions held at Nadex in the member’s personalaccounts or “controlled accounts,” as defined inCommission Regulation 1.3(j);B.

Gross positions held at Nadex in proprietary accounts, as
defined in Commission Regulation 1.17(b)(3), at themember’s affiliated firm;

C.

Gross positions held at Nadex in accounts in which themember is a principal, as defined in Commission Regulation
3.1(a);

D.

Net positions held at Nadex in “customer” accounts, as
defined in Commission Regulation 1.17(b)(2), at themember’s affiliated firm; and

88

E.

(4)

(iii)

Any other types of positions, whether maintained at Nadex
or elsewhere, held in the member’s personal accounts or the
proprietary accounts of the member’s affiliated firm that the
self-regulatory organization reasonably expects could be
affected by the significant action.

Bases for determination. Taking into consideration the exigency ofthe significant action, such determinations should be based upon:A.

The most recent large trader reports and clearing records
available to Nadex;

B.

Information provided by the member with respect topositions pursuant to paragraph (b)(2)(ii) of this Rule; andC.

Any other source of information that is held by andreasonably available to Nadex.

Participation in deliberations.
(1)

Under the Rules required by this section, a Nadex governing board,
disciplinary committee or oversight panel may permit a member toparticipate in deliberations prior to a vote on a significant action forwhich he or she otherwise would be required to abstain, pursuant
to paragraph (b)(2) of this Rule, if such participation would beconsistent with the public interest and the member recuses himself
or herself from voting on such action.

(2)

In making a determination as to whether to permit a member toparticipate in deliberations on a significant action for which he or
she otherwise would be required to abstain, the deliberating bodyshall consider the following factors:

(3)

A.

Whether the member’s participation in deliberations isnecessary for the deliberating body to achieve a quorum inthe matter; andB.

Whether the member has unique or special expertise,knowledge or experience in the matter under consideration.

Prior to any determination pursuant to paragraph (b)(3)(i) of thisRule, the deliberating body must fully consider the position
information which is the basis for the member’s direct and89substantial financial interest in the result of a vote on a significant
action pursuant to paragraph (b)(2) of this Rule.
(iv)

Documentation of determination. Nadex’s governing boards, disciplinarycommittees, and oversight panels must reflect in their minutes orotherwise document that the conflicts determination procedures requiredby this section have been followed. Such records also must include:(1)

The names of all members who attended the meeting in person or
who otherwise were present by electronic means;(2)

The name of any member who voluntarily recused himself or
herself or was required to abstain from deliberations and/or voting
on a matter and the reason for the recusal or abstention, if stated;
and

(3)

Information on the position information that was reviewed for eachmember.
Remainder of page left blank90

TERMS OF CONTRACTS TRADED ON NADEXThe following Rules set forth the terms of the Contracts traded on Nadex. You should not trade
any Contract unless you are certain that you completely understand its terms. Additional
information with respect to each Contract can be found on the home page for the specificContract.
TERMS THAT ARE UNIFORM ACROSS CONTRACTS
There are certain terms that are uniform across Contracts.
(a)

The minimum unit of trading for each Contract is one Contract.

(b)

All Contract prices are quoted in U.S. dollars and cents per Contract.

(c)

The minimum quote increment for each Contract is $.01 per Contract.

(d)

All Expiration Values will be posted on Nadex’s website no later than the close ofbusiness of the Expiration Date of a Contract Series.

(e)

At the time Nadex sets the Payout Criterion for any Binary Contract, Nadex will
review its then-existing Binary Contracts in the same Class having the same
Expiration time. No new Binary Contract in that same Class and having the same
Expiration time will be offered with the same Payout Criterion. Instead, in instanceswhere a duplicate Payout Criterion would be generated under the applicableproduct rule, the Payout Criterion for that Contract will be adjusted by predetermined levels which shall be published on the Nadex website.

(f)

All Nadex Binary Contracts and Variable Payout Contracts are deemed to be“swaps” as defined in 17 USC 1a(47).

(g)

Issuance - Except as otherwise provided for in a particular contract’s
specifications or where the issuance of a contract(s) as described herein may be
impacted by a recognized holiday, for each planned release by the Source Agencyof the Underlying, Nadex will issue various Contracts, each of a different Series. A
new issuance of Contracts will commence no later than two (2) Business Days
following the Expiration Date.

(h)Halted Markets - In the event that any market irregularities are declared by the
Chief Executive Officer of the Exchange, or to prevent or reduce the potential riskof price distortions or market disruptions, a market may be paused or halted for
trading, and the Commission will be notified, if required, pursuant to Commission
Regulations. An explanation will be posted on the Nadex Notices section of thewebsite within a reasonable amount of time but no later than 24 hours after the
initiation of the halt.
91
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(i)Discretion to Refrain from Listing Contracts - Nadex may, in its discretion,
temporarily refrain from the listing of any contract due to the unavailability of theunderlying market upon which the Contract is based, or any other condition Nadex
determines may be detrimental to the listing of the Contract.

(j)

Limit Up/Limit Down - In the event the corresponding underlying market uponwhich any Nadex contract is based is subject to a lock limit up or down, Nadex
may halt trading in its related market, and/or refrain from listing contracts in thatmarket, until trading resumes in the underlying market. Should Nadex halt and/or
refrain from listing contracts pursuant to this section, notice of the halt, and any
adjustments to the settlement process, will be posted on the Notices page as soon
as practicable.

(k)Contract Modifications - Specifications shall be fixed as of the first day of tradingof a contract. If any U.S. governmental agency or body issues an order, ruling,
directive or law that conflicts with the requirements of these rules, such order,
ruling, directive or law shall be construed to take precedence and become part ofthese rules, and all open and new contracts shall be subject to such government
orders.

(l)Volume Threshold Level - The current Volume Threshold Level is 2506 contracts
or more per day.

(m)

Adjustment of Acceptable Bid/Ask Spread for Currency Settlement - Nadex may
adjust the parameters of the acceptable bid/ask spread in any underlying foreign
currency market when determining the midpoint price in connection with thecollection of market data used in the calculation of the expiration value of a Nadex
Foreign Currency Binary or Variable Payout contract, as Nadex deems necessary
or appropriate based on the underlying market conditions in order to produce anaccurate representation of the underlying market value for settlement purposes.
Any adjustment to the acceptable spread will be indicated on the Nadex website
on the Notices page.

(n)

CONTRACT DURATION(i)

Daily Contracts means a Series of Contracts that have an Expiration Date
within 24 hours after they are issued.

6 The volume threshold level of 250 contracts or more per day was set pursuant to No-Action Letter No. 16-32, issued

on April 8, 2016, which allows the level to be set at 250 through September 28, 2017. This relief was extended on
September 25, 2017 in CFTC Staff Letter 17-45 and again in Staff Letter 20-30. The 250 volume threshold level willcontinue until September 29, 2023.

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(ii)

Intraday Contracts means a Series of Contracts that expire on the same
trade date as, and within nine hours or less, of issuance.

(iii)

Weekly Contracts mean a Series of Contracts that have an Expiration Datethat is no less than three calendar days7 and no greater than sevencalendar days from the date on which the Contracts are issued.

(iv)

Monthly Contracts means a Series of Contracts that have a Payout
Criterion based on the last reported level of the Underlying by the Source
Agency. Monthly Contracts have an Expiration Date that is no less thantwenty-one calendar days and no greater than thirty-five calendar days
from the date on which the last reported level of the Underlying is releasedby the Source Agency.

(v)

Open Contracts means a Series of Contracts whose Expiration Date isdependent on the Release Date of the underlying Source Agency, and does
not follow a standardized set pattern.

– 12.3 [RESERVED]GOLD VARIABLE PAYOUT CONTRACTS
RULE 12.4.1

GOLD “CALL SPREAD” VARIABLE PAYOUT CONTRACTS(a)

SCOPE –These Rules shall apply to the Class of Contracts referred to as the Gold
Variable Call Spread Payout Contracts issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the price, per troy
ounce (in US dollars), of the Gold Futures Contracts (“GFC”) traded on the
COMEX® Division of the New York Mercantile Exchange (“NYMEX”®)8. The GFC
trade prices that will be used for the Underlying will be taken from the February,
April, June, August, or December GFC delivery months (each a “GFC Delivery
Month”). The Start and End Date for which Nadex will use a specific delivery monthas the Underlying will be set based on the Settlement date of the Underlying futurescontract. The date on which a new delivery month will be used as the Underlying
for Nadex contracts (i.e. “Start Date”) is one calendar day after the End Date forthe previous delivery month contract. The last day on which a delivery month will

7 In circumstances where the Expiration Date is less than three calendar days from the Contract’s issue date as a resultof the Source Agency rescheduling the release of the Expiration Value due to a public holiday, the Contract shallnevertheless be considered a Weekly Contract.
8 NYMEX® is a registered service mark of the New York Mercantile Exchange, Inc. COMEX® is a registered service
mark of the Commodity Exchange, Inc. Nadex is not affiliated with the New York Mercantile Exchange, Inc. or the
Commodity Exchange, Inc. and neither the New York Mercantile Exchange, the Commodity Exchange, Inc., nor theiraffiliates, sponsor or endorse Nadex or any of its products in any way.

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93be used as the Underlying for Nadex contracts (i.e. “End Date”) is the last Friday
Business Day of the month preceding the month of the Underlying futurescontracts Expiration Date unless the last Friday business day of the month

preceding the month of the Underlying futures contracts Expiration Date isequal to the last business day of the month preceding the month of theUnderlying futures contracts Expiration Date then the “End Date” will be thesecond to last Friday business day of the month preceding the month of theUnderlying futures contracts Expiration Date. For example, the Comex Gold
December 2023 futures have an Expiration Date of December 27, 2023. The last
day on which the Gold December 2023 futures prices will be used as the Underlying
for Nadex contracts and to calculate the Expiration Value on the Expiration Datefor the relevant Gold contracts will be the last Friday Business Day of the preceding
month, November 2023. Therefore, the End Date for using Comex Gold December
2023 futures will be November 24, 2023 and the Start Date for the next delivery
month, Comex Gold February 2024 futures, will be November 25, 2023. The second
example, the Comex Gold December 2024 futures have an Expiration Date ofDecember 27, 2024. The last day on which the Gold December 2024 futures prices
will be used as the Underlying for Nadex contracts and to calculate the Expiration
Value on the Expiration Date for the relevant Gold contracts will be the second tolast Friday business day of the preceding month, November 2024. Therefore, theEnd Date for using Comex Gold December 2024 futures will be November 22, 2024,
and the Start Date for the next delivery month, Comex Gold February 2025 futures,will be November 23, 2024.
(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the Gold Variable
Payout Contract, the Payout Criteria for the Contracts will be set as follows:(i)

DAILY GOLD CALL SPREAD VARIABLE PAYOUT CONTRACTS, 1:30 PM ET
CLOSE - At the commencement of trading in a Daily Gold Call Spread
Variable Payout Contract, referred to as a ‘Call Spread’, Nadex shall list one(1) Call Spread Contract, which conforms to the Payout Criteria listed
below:(1)

DAILY GOLD CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 50.00.

B.

FLOOR – The Floor shall be X – 50.00.
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94

C.
(2)

(ii)

(iii)

(iv)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10.

In each case, “X” equals the last Gold price, as reported by the
Source Agency, rounded to the nearest 50.

DAILY GOLD CALL SPREAD CONTRACTS, 1:30 PM ET CLOSE – Nadex shalllist a set of three (3) Call Spread Contracts with overlapping ranges, which
conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 50.

(2)

CONTRACT 2: The Ceiling shall be X + 25; The Floor shall be X – 25.

(3)

CONTRACT 3: The Ceiling shall be X + 50; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10.

(5)

In each case, “X” equals the last Gold price, as reported by the
Source Agency, rounded to the nearest 50.

INTRADAY GOLD CALL SPREAD CONTRACTS, 8AM ET to 1:30 PM ET
CLOSE - Nadex shall list a set of three (3) Call Spread Contracts withoverlapping ranges, which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 40.

(2)

CONTRACT 2: The Ceiling shall be X + 20; The Floor shall be X – 20.

(3)

CONTRACT 3: The Ceiling shall be X + 40; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10.

(5)

In each case, “X” equals the last Gold price, as reported by the
Source Agency, rounded to the nearest 10.

INTRADAY 2-HOUR GOLD CALL SPREAD CONTRACTS, 10:00AM, 11:00AM,
12:00PM, and 1:00PM ET CLOSE - Nadex shall list a set of three (3) Call
Spread Contracts that open 2 hours prior to the stated closing time(s)above with overlapping ranges, which conform to the Payout Criteria listed
below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 15.

(2)

CONTRACT 2: The Ceiling shall be X + 7.5; The Floor shall be X –7.5.
95317083742.2

95

(v)

(3)

CONTRACT 3: The Ceiling shall be X + 15; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10.

(5)

In each case, “X” equals the last Gold price, as reported by the
Source Agency, rounded to the nearest 10.

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for Gold Call Spread Contracts shall be
0.10.

(g)

POSITION LIMIT – The Position Limits for Gold Call Spread Contracts shall be 250
Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the Gold
Call Spread Variable Payout Contracts for contracted Market Makers shall be 500
Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date of the Contract is the same date as
the Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the Gold Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of Gold releasedby the Source Agency on the Expiration Date. The Expiration Value is calculated by
the Source Agency by taking all GFC trade prices occurring in the ten (10) seconds
leading up to the close of trading of the Gold Call Spread Contract, provided atleast twenty-five (25) trade prices are captured during the ten (10) second period,
removing the highest twenty (20) percent of GFC trade prices and the lowest
twenty (20) percent of GFC trade prices from the data set9, and using the remaining

9 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior

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96GFC trade prices to calculate the Expiration Value. The calculation used is a simple
average of the remaining GFC trade prices in the data set, rounded to one decimal
point past the precision of the underlying market. In the event the time it takes tocollect at least twenty-five (25) GFC trade prices exceeds the ten (10) seconds justprior to the close of trading of the Gold Call Spread Contract, the Expiration Valueis calculated by the Source Agency by taking the last twenty-five (25) GFC trade
prices just prior to the close of trading of the Gold Call Spread Contract removing
the highest five (5) GFC trade prices and the lowest five (5) GFC trade prices, andusing the remaining fifteen (15) GFC trade prices to calculate the Expiration Value.
The calculation used is a simple average of all fifteen (15) GFC trade prices,rounded to one decimal point past the precision of the underlying market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.

RULE 12.4.2

GOLD “TOUCH BRACKET” VARIABLE PAYOUT CONTRACTS(a)

SCOPE –These Rules shall apply to the Class of Contracts referred to as the Gold
Touch Bracket Variable Payout Contracts issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the price, per troy
ounce (in US dollars), of the Gold Futures Contracts (“GFC”) traded on the
COMEX® Division of the New York Mercantile Exchange (“NYMEX”®) 10. The GFC
trade prices that will be used for the Underlying will be taken from the February,
April, June, August, or December GFC delivery months (each a “GFC Delivery
Month”). The Start and End Date for which Nadex will use a specific delivery monthas the Underlying will be set based on the Settlement date of the Underlying futurescontract. The date on which a new delivery month will be used as the Underlying
for Nadex contracts (i.e. “Start Date”) is one calendar day after the End Date forthe previous delivery month contract. The last day on which a delivery month will
be used as the Underlying for Nadex contracts (i.e. “End Date”) is the last Friday
Business Day of the month preceding the month of the Underlying futurescontracts Expiration Date unless the last Friday business day of the month

preceding the month of the Underlying futures contracts Expiration Date isequal to the last business day of the month preceding the month of theto the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.
10 NYMEX® is a registered service mark of the New York Mercantile Exchange, Inc. COMEX® is a registered service
mark of the Commodity Exchange, Inc. Nadex is not affiliated with the New York Mercantile Exchange, Inc. or the
Commodity Exchange, Inc. and neither the New York Mercantile Exchange, the Commodity Exchange, Inc., nor theiraffiliates, sponsor or endorse Nadex or any of its products in any way.

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97Underlying futures contracts Expiration Date then the “End Date” will be thesecond to last Friday business day of the month preceding the month of theUnderlying futures contracts Expiration Date. For example, the Comex Gold
December 2023 futures have an Expiration Date of December 27, 2023. The last
day on which the Gold December 2023 futures prices will be used as the Underlying
for Nadex contracts and to calculate the Expiration Value on the Expiration Datefor the relevant Gold contracts will be the last Friday Business Day of the preceding
month, November 2023. Therefore, the End Date for using Comex Gold December
2023 futures will be November 24, 2023 and the Start Date for the next delivery
month, Comex Gold February 2024 futures, will be November 25, 2023. The

second example, the Comex Gold December 2024 futures have an
Expiration Date of December 27, 2024. The last day on which the Gold
December 2024 futures prices will be used as the Underlying for Nadex
contracts and to calculate the Expiration Value on the Expiration Date forthe relevant Gold contracts will be the second to last Friday business dayof the preceding month, November 2024. Therefore, the End Date for using
Comex Gold December 2024 futures will be November 22, 2024, and theStart Date for the next delivery month, Comex Gold February 2025 futures,will be November 23, 2024.
(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the Gold Touch
Bracket Contracts, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY GOLD TOUCH BRACKET VARIABLE PAYOUT CONTRACTS, Close
Time is the earlier of 1:30 PM ET on the last Trade Day of the contract
listing, or when the Gold Index Value is equal to or greater than the Ceiling,or equal to or less than the Floor. Nadex shall list a set of four (4) Touch
Bracket Variable Payout Contracts, referred to as a “Touch Bracket”, that
open at 6:00PM ET on the first Trade Day of the week, with overlapping
ranges, which conform to the Payout Criteria listed below.
(1)

CONTRACT 1: The Ceiling shall be X + 16; The Floor shall be X – 4.

(2)

CONTRACT 1: The Ceiling shall be X + 12; The Floor shall be X – 8.

(3)

CONTRACT 1: The Ceiling shall be X + 8; The Floor shall be X – 12.

(4)

CONTRACT 1: The Ceiling shall be X + 4; The Floor shall be X – 16.
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98

(ii)

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10.

(6)

In each case, “X” equals the last Gold price, as reported by the
Source Agency, rounded to the nearest 1.

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 16 (or 4) and a Floor of X – 4 (or 16) where X
equals the Ceiling (or Floor) of the Touch Bracket that expired early. The
newly listed Touch Bracket will have the same Last Trade Day as originallyestablished for the expired Touch Bracket and the same Dollar Multiplieras the expired Touch Bracket.

(f)

MINIMUM TICK – The Minimum Tick size for Gold Touch Bracket Variable Payout
Contracts shall be 0.1.

(g)

POSITION LIMIT – The Position Limit for Gold Touch Bracket Variable Payout
Contracts shall be 100 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the Gold
Touch Bracket Variable Payout Contracts for contracted Market Makers shall be
100,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date of the Contract is the same date as
the Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the Gold Touch Bracket Contract Expiration Value is released by the Source
Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

GOLD INDEX VALUE – The Source Agency shall calculate and produce a Gold
Index Value once each second throughout the life of the Gold Variable Payout
Contracts. That is, each second the Source Agency will calculate a Gold Index
Value by taking all GFC trade prices occurring in the ten (10) seconds leading up
to the Calculation Time, provided at least twenty-five (25) trade prices are captured
during the ten (10) second period, removing the highest twenty (20) percent of GFC
trade prices and the lowest twenty (20) percent of GFC trade prices from the data
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99set11, and using the remaining GFC trade prices to calculate the Index Value. The
calculation used is a simple average of the remaining GFC trade prices in the dataset, rounded to one decimal point past the precision of the underlying market. In
the event the time it takes to collect at least twenty-five (25) GFC trade prices
exceeds the ten (10) seconds just prior to the Calculation Time, the Index Value iscalculated by the Source Agency by taking the last twenty-five (25) GFC trade
prices just prior to the Calculation Time removing the highest five (5) GFC trade
prices and the lowest five (5) GFC trade prices, and using the remaining fifteen(15) GFC trade prices to calculate the Index Value. The calculation used is a simple
average of all fifteen (15) GFC trade prices, rounded to one decimal point past the
precision of the underlying market.
(n)

EXPIRATION VALUE – The Expiration Value is the Gold Index Value as released by
the Source Agency at Expiration.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
agency, the Settlement Date will be delayed until the Underlying number is released
for the Series.
GOLD BINARY CONTRACTS(a)

SCOPE –These Rules shall apply to the Class of Contracts referred to as the Gold
Binary Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the price, per troy
ounce (in US dollars), of Gold obtained from the Gold Futures Contracts (“GFC”)
traded on the COMEX Division of the New York Mercantile Exchange(“NYMEX®”)12. The GFC trade prices that will be used for the Underlying will betaken from the February, April, June, August, or December GFC delivery months(each a “GFC Delivery Month”). The Start and End Date for which Nadex will use a
specific delivery month as the Underlying will be set based on the Settlement dateof the Underlying futures contract. The date on which a new delivery month will be
used as the Underlying for Nadex contracts (i.e. “Start Date”) is one calendar day
after the End Date for the previous delivery month contract. The last day on which
a delivery month will be used as the Underlying for Nadex contracts (i.e. “End11 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.
12 NYMEX® is a registered service mark of the New York Mercantile Exchange, Inc. COMEX® is a registered service
mark of the Commodity Exchange, Inc. Nadex is not affiliated with the New York Mercantile Exchange, Inc. or the
Commodity Exchange, Inc. and neither the New York Mercantile Exchange, the Commodity Exchange, Inc., nor theiraffiliates, sponsor or endorse Nadex or any of its products in any way.

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100Date”) is the last Friday Business Day of the month preceding the month of theUnderlying futures contracts Expiration Date unless the last Friday business

day of the month preceding the month of the Underlying futures contracts
Expiration Date is equal to the last business day of the month preceding themonth of the Underlying futures contracts Expiration Date then the “EndDate” will be the second to last Friday business day of the month preceding
the month of the Underlying futures contracts Expiration Date. For example,
the Comex Gold December 2023 futures have an Expiration Date of December 27,
2023. The last day on which the Gold December 2023 futures prices will be usedas the Underlying for Nadex contracts and to calculate the Expiration Value on the
Expiration Date for the relevant Gold contracts will be the last Friday Business Dayof the preceding month, November 2023. Therefore, the End Date for using Comex
Gold December 2023 futures will be November 23, 2023 and the Start Date for the
next delivery month, Comex Gold February 2024 futures, will be November 25,
2023. The second example, the Comex Gold December 2024 futures have an
Expiration Date of December 27, 2024. The last day on which the Gold December
2024 futures prices will be used as the Underlying for Nadex contracts and to
calculate the Expiration Value on the Expiration Date for the relevant Gold
contracts will be the second to last Friday business day of the preceding month,
November 2024. Therefore, the End Date for using Comex Gold December 2024
futures will be November 22, 2024, and the Start Date for the next delivery month,
Comex Gold February 2025 futures, will be November 23, 2024.13(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the Gold Binary Contract,
the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY GOLD BINARY CONTRACTS(1)

EXPIRATION TIME – 1:30PM ET CLOSE

13 Weekly contracts listed on a Monday during a week containing an Underlying futures rollover date will be listed using

the Underlying futures month scheduled to be used to determine the settlement value on the day the contract expires.
For example, the End Date for which Nadex will use the Comex Gold April 2014 Underlying futures to determine thesettlement value is March 27, 2014. March 27, 2014 is a Thursday, however, and any Nadex weekly contracts listed forthis roll week and expiring on Friday, March 28, 2014, will be listed using the Comex Gold June 2014 futures as its
Underlying, as June is the futures month scheduled to be used to determine the Settlement Value of the Nadex weekly
contract on its expiration date. Therefore, the Start Date for the Comex Gold June 2014 futures will be Monday, March24, 2014 for any Nadex weekly contracts listed on this date.

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(ii)

(iii)

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 10.0.

(3)

NUMBER OF STRIKE LEVELS LISTED - Thirteen (13) strike levels will
be listed for each Weekly Gold Binary Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Binary Contract “W” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 0.5
as reported by the Source Agency. Six (6) strike levels will be
generated above Binary Contract W at an interval of 10.0, and six(6) strike levels will be generated below Binary Contract W at aninterval of 10.0 (e.g. W – 10.0; W; W + 10.0). The Contract will havea Payout Criterion of greater than the strike level value.

DAILY GOLD BINARY CONTRACTS(1)

EXPIRATION TIME – 1:30PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 3.

(3)

NUMBER OF STRIKE LEVELS LISTED – Twenty-one (21) strikelevels will be listed for each Daily Gold Binary Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Binary Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 1.0
as reported by the Source Agency. Ten (10) strike levels will be
generated above Binary Contract Y at an interval of 3, and ten (10)strike levels will be generated below Binary Contract Y at an intervalof 3 (e.g. Y – 3; Y; Y + 3). The Contract will have a Payout Criterionof greater than the strike level value.

INTRADAY GOLD BINARY CONTRACTS(1)

EXPIRATION TIME – 10:00AM, 11:00AM, 12:00PM, 1:00PM ET
CLOSE

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(iv)

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 3.

(3)

NUMBER OF STRIKE LEVELS LISTED - Nine (9) strike levels will belisted for each Intraday Gold Binary Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 0.1
as reported by the Source Agency. Four (4) strike levels will be
generated above Binary Contract Z at an interval of 3, and four (4)strike levels will be generated below Binary Contract Z at an intervalof 3 (e.g. Z – 3; Z; Z + 3). The Contract will have a Payout Criterionof greater than the strike level value.

Nadex may list additional Gold Binary Contract with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for Gold Binary Contracts shall be $0.25.

(g)

POSITION LIMIT – The Position Limits for the Gold Binary Contracts shall be 2,500
Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the Gold
Binary Contracts for contracted Market Makers shall be 5,000 Contracts per strikelevel.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Expiration Date. No trading in the Gold Binary Contracts shall occur after its Last
Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Gold Expiration Value is to be released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney Gold Binary Contract is $100.

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(m)

EXPIRATION VALUE – The Expiration Value is the price or value of Gold releasedby the Source Agency on the Expiration Date. The Expiration Value is calculated by
the Source Agency by taking all GFC trade prices occurring in the ten (10) seconds
leading up to the close of trading of the Gold Binary Contract, provided at least
twenty-five (25) trade prices are captured during the ten (10) second period,
removing the highest twenty (20) percent of GFC trade prices and the lowest
twenty (20) percent of GFC trade prices from the data set14, and using theremaining GFC trade prices to calculate the Expiration Value. The calculation used
is a simple average of the remaining GFC trade prices in the data set, rounded to
one decimal point past the precision of the underlying market. In the event the time
it takes to collect at least twenty-five (25) GFC trade prices exceeds the ten (10)seconds just prior to the close of trading of the Gold Binary Contract, the Expiration
Value is calculated by the Source Agency by taking the last twenty-five (25) GFC
trade prices just prior to the close of trading of the Gold Binary Contract removing
the highest five (5) GFC trade prices and the lowest five (5) GFC trade prices, andusing the remaining fifteen (15) GFC trade prices to calculate the Expiration Value.
The calculation used is a simple average of all fifteen (15) GFC trade prices,rounded to one decimal point past the precision of the underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series. If there are less than 250 GFC trade prices available during
a single trading day prior to the issuance of a new Gold Contract Nadex may switch
to the next available GFC Delivery Month that provides at least 250 GFC trade
prices.
SILVER VARIABLE PAYOUT CONTRACTS

RULE 12.6.1

SILVER “CALL SPREAD” VARIABLE PAYOUT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the Silver
Call Spread Variable Payout Contracts issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the price, cents pertroy ounce (in US Currency), of Silver obtained from the Silver Futures Contracts(“SFC”) traded on the COMEX Division of the New York Mercantile Exchange

14 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

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(“NYMEX”®15). The SFC trade prices that will be used to for the Underlying will betaken from the March, May, July, September, or December SFC delivery months(each a “SFC Delivery Month”). The Start and End Date for which Nadex will use a
specific delivery month as the Underlying will be set based on the Settlement dateof the Underlying futures contract. The date on which a new delivery month will be
used as the Underlying for Nadex contracts (i.e. “Start Date”) is one calendar day
after the End Date for the previous delivery month contract. The last day on which
a delivery month will be used as the Underlying for Nadex contracts (i.e. “End Date”)
is the last Friday Business Day of the month preceding the month of the Underlying
futures contracts Expiration Date unless the last Friday business day of themonth preceding the month of the Underlying futures contracts Expiration
Date is equal to the last business day of the month preceding the month of
the Underlying futures contracts Expiration Date then the “End Date” will be
the second to last Friday. For example, the Comex Silver September 2023
futures have an Expiration Date of September 27, 2023. The last day on which theSilver September 2023 futures prices will be used as the Underlying for Nadex
contracts and to calculate the Expiration Value on the Expiration Date for the
relevant Silver contracts will be the last Friday Business Day of the preceding
month, August 2023. Therefore, the End Date for using Comex Silver September
2023 futures will be August 25, 2023 and the Start Date for the next delivery month,
Comex Silver December 2023 futures, will be August 26, 2023. The second

example, the Comex Silver December 2024 futures have an Expiration Dateof December 27, 2024. The last day on which the Silver December 2024
futures prices will be used as the Underlying for Nadex contracts and to
calculate the Expiration Value on the Expiration Date for the relevant Silver
contracts will be the second to last Friday business day of the preceding
month, November 2024. Therefore, the End Date for using Comex Silver
December 2024 futures will be November 22, 2024, and the Start Date forthe next delivery month, Comex Silver February 2025 futures, will be
November 23, 2024.
(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the Silver Call

15 NYMEX® is a registered service mark of the New York Mercantile Exchange, Inc. COMEX® is a registered service

mark of the Commodity Exchange, Inc. Nadex is not affiliated with the New York Mercantile Exchange, Inc. or the
Commodity Exchange, Inc. and neither the New York Mercantile Exchange, the Commodity Exchange, Inc., nor theiraffiliates, sponsor or endorse Nadex or any of its products in any way.

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105Spread Variable Payout Contract, the Payout Criteria for the Contracts will be set
as follows;(i)

DAILY SILVER CALL SPREAD VARIABLE PAYOUT CONTRACTS, 1:25 PM ET
CLOSE - At the commencement of trading in a Daily Call Spread Silver
Variable Payout Contract, referred to as a ‘Call Spread’, Nadex shall list one(1) Call Spread Contract, which conforms to the Payout Criteria listed
below:
(1)

(2)

(ii)

(iii)

317083742.2

DAILY SILVER CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 2.00.

B.

FLOOR – The Floor shall be X – 2.00.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

In each case, “X” equals the last Silver price, as reported by the
Source Agency, rounded to the nearest .50.

DAILY SILVER CALL SPREAD CONTRACTS, 1:25 PM ET CLOSE - Nadex
shall list a set of three (3) Call Spread Contracts with overlapping ranges,
which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 2.00.

(2)CONTRACT 2: The Ceiling shall be X + 1.00; The Floor shall be X –
1.00.

(3)

CONTRACT 3: The Ceiling shall be X + 2.00; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(5)

In each case, “X” equals the last Silver price, as reported by the
Source Agency, rounded to the nearest .50.

INTRADAY SILVER CALL SPREAD CONTRACTS, 8AM ET to 1:25 PM ET
CLOSE - Nadex shall list a set of three (3) Call Spread Contracts withoverlapping ranges, which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 1.50.

(2)

CONTRACT 2: The Ceiling shall be X + .075; The Floor shall be X –
.075.

(3)

CONTRACT 3: The Ceiling shall be X + 1.50; The Floor shall be X.
106
106

(iv)

(v)

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(5)

In each case, “X” equals the last Silver price, as reported by the
Source Agency, rounded to the nearest .25.

INTRADAY 2-HOUR SILVER CALL SPREAD CONTRACTS, 10:00AM,
11:00AM, 12:00PM, and 1:00PM ET CLOSE - Nadex shall list a set of three(3) Call Spread Contracts that open 2 hours prior to the stated closingtime(s) above with overlapping ranges, which conform to the Payout
Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – .50.

(2)

CONTRACT 2: The Ceiling shall be X + .25; The Floor shall be X –
.25.

(3)

CONTRACT 3: The Ceiling shall be X + .50; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(5)

In each case, “X” equals the last Silver price, as reported by the
Source Agency, rounded to the nearest .25.

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for Silver Call Spread Contracts shall be
.01.

(g)

POSITION LIMIT – The Position Limits for Silver Call Spread Contracts shall be
250 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for theSilver Call Spread Variable Payout Contracts for contracted Market Makers shallbe 500 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date of the Contract is the same date as
the Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the Silver Expiration Value is released by the Source Agency.
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(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EXPIRATION VALUE –The Expiration Value is the price or value of Silver Index
Value released by the Source Agency at Expiration on the Expiration Date. The
Expiration Value is calculated by the Source Agency by taking all SFC trade prices
occurring in the ten (10) seconds leading up to the close of trading of the Silver
Call Spread Contract, provided at least twenty-five (25) trade prices are captured
during the ten (10) second period, removing the highest twenty (20) percent of SFC
trade prices and the lowest twenty (20) percent of SFC trade prices from the data
set16, and using the remaining SFC trade prices to calculate the Expiration Value.
The calculation used is a simple average of the remaining SFC trade prices in thedata set, rounded to one decimal point past the precision of the underlying market.
In the event the time it takes to collect at least twenty-five (25) SFC trade prices
exceeds the ten (10) seconds just prior to the close of trading of the Silver Call
Spread Contract, the Expiration Value is calculated by the Source Agency by taking
the last twenty-five (25) SFC trade prices just prior to the close of trading of theSilver Call Spread Contract removing the highest five (5) SFC trade prices and thelowest five (5) SFC trade prices, and using the remaining fifteen (15) SFC trade
prices to calculate the Expiration Value. The calculation used is a simple averageof all fifteen (15) SFC trade prices, rounded to one decimal point past the precisionof the underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series. If there are less than 250 SFC trade prices available during
a single trading day prior to the issuance of a new Silver Contract Nadex may
switch to the next available SFC Delivery Month that provides at least 250 SFC
trade prices.

RULE 12.6.2(a)

SILVER “TOUCH BRACKET” VARIABLE PAYOUT CONTRACTSSCOPE –These Rules shall apply to the Class of Contracts referred to as the Silver
Touch Bracket Variable Payout Contracts issued by Nadex.

16 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

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(b)

UNDERLYING – The Underlying for this Class of Contracts is the price, cents pertroy ounce (in US Currency), of Silver obtained from the Silver Futures Contracts(“SFC”) traded on the COMEX Division of the New York Mercantile Exchange(“NYMEX”®17). The SFC trade prices that will be used to for the Underlying will betaken from the March, May, July, September, or December SFC delivery months(each a “SFC Delivery Month”). The Start and End Date for which Nadex will use a
specific delivery month as the Underlying will be set based on the Settlement dateof the Underlying futures contract. The date on which a new delivery month will be
used as the Underlying for Nadex contracts (i.e. “Start Date”) is one calendar day
after the End Date for the previous delivery month contract. The last day on which
a delivery month will be used as the Underlying for Nadex contracts (i.e. “End Date”)
is the last Friday Business Day of the month preceding the month of the Underlying
futures contracts Expiration Date unless the last Friday business day of themonth preceding the month of the Underlying futures contracts Expiration
Date is equal to the last business day of the month preceding the month of
the Underlying futures contracts Expiration Date then the “End Date” will be
the second to last Friday. For example, the Comex Silver September 2023
futures have an Expiration Date of September 27, 2023. The last day on which theSilver September 2023 futures prices will be used as the Underlying for Nadex
contracts and to calculate the Expiration Value on the Expiration Date for the
relevant Silver contracts will be the last Friday Business Day of the preceding
month, August 2023. Therefore, the End Date for using Comex Silver September
2023 futures will be August 25, 2023 and the Start Date for the next delivery month,
Comex Silver December 2023 futures, will be August 26, 2023. The second
example, the Comex Silver December 2024 futures have an Expiration Date ofDecember 27, 2024. The last day on which the Silver December 2024 futures prices
will be used as the Underlying for Nadex contracts and to calculate the Expiration
Value on the Expiration Date for the relevant Silver contracts will be the second tolast Friday business day of the preceding month, November 2024. Therefore, theEnd Date for using Comex Silver December 2024 futures will be November 22,
2024, and the Start Date for the next delivery month, Comex Silver February 2025
futures, will be November 23, 2024.
(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

17 NYMEX® is a registered service mark of the New York Mercantile Exchange, Inc. COMEX® is a registered service

mark of the Commodity Exchange, Inc. Nadex is not affiliated with the New York Mercantile Exchange, Inc. or the
Commodity Exchange, Inc. and neither the New York Mercantile Exchange, the Commodity Exchange, Inc., nor theiraffiliates, sponsor or endorse Nadex or any of its products in any way.

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(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the Silver Touch
Bracket Contracts, the Payout Criteria for the Contracts will be set as follows:
(i)

(ii)

WEEKLY SILVER TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Close Time is the earlier of 1:25 PM ET on the last Trade Day of the contract
listing, or when the Silver Index Value is equal to or greater than the Ceiling,or equal to or less than the Floor. Nadex shall list a set of four (4) Touch
Bracket Variable Payout Contracts, referred to as a “Touch Bracket”, that
open at 3:00AM ET on the first Trade Day of the week, with overlapping
ranges, which conform to the Payout Criteria listed below.
(1)

CONTRACT 1: The Ceiling shall be X + 0.6; The Floor shall be X –
0.15.

(2)

CONTRACT 1: The Ceiling shall be X + 0.45; The Floor shall be X –
0.3.

(3)

CONTRACT 1: The Ceiling shall be X + 0.3; The Floor shall be X –
0.45.

(4)

CONTRACT 1: The Ceiling shall be X + 0.15; The Floor shall be X –
0.6.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(6)

In each case, “X” equals the last Crude Oil price, as reported by the
Source Agency, rounded to the nearest 0.25.

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 0.6 (or 0.15) and a Floor of X – 0.15 (or 0.6)
where X equals the Ceiling (or Floor) of the Touch Bracket that expired
early. The newly listed Touch Bracket will have the same Last Trade Day as
originally established for the expired Touch Bracket and the same Dollar
Multiplier as the expired Touch Bracket.

(f)

MINIMUM TICK – The Minimum Tick size for Silver Touch Bracket Variable Payout
Contracts shall be 0.01.

(g)

POSITION LIMIT – The Position Limit for Silver Touch Bracket Variable Payout
Contracts shall be 100 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for theSilver Touch Bracket Variable Payout Contracts for contracted Market Makers
shall be 100,000 Contracts per strike level.
110110317083742.2

(i)LAST TRADING DATE – The Last Trading Date of the Contract is the same date as
the Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the Silver Touch Bracket Contract Expiration Value is released by the Source
Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

SILVER INDEX VALUE – The Source Agency shall calculate and produce a Silver
Index Value once each second throughout the life of the Silver Variable Payout
contracts. That is, each second the Source Agency will calculate a Silver Index
Value by taking all SFC trade prices occurring in the ten (10) seconds leading up
to the Calculation Time, provided at least twenty-five (25) trade prices are captured
during the ten (10) second period, removing the highest twenty (20) percent of SFC
trade prices and the lowest twenty (20) percent of SFC trade prices in the data
set18, and using the remaining SFC trade prices in the data set, to calculate theIndex Value. The calculation used is a simple average of the remaining SFC trade
prices in the data set, rounded to one decimal point past the precision of theunderlying market. In the event the time it takes to collect at least twenty-five (25)
SFC trade prices exceeds the ten (10) seconds just prior to the Calculation Time,the Index Value is calculated by the Source Agency by taking the last twenty-five(25) SFC trade prices just prior to the Calculation Time, removing the highest five(5) SFC trade prices and the lowest five (5) SFC trade prices, and using theremaining fifteen (15) SFC trade prices to calculate the Index Value. The
calculation used is a simple average of all fifteen (15) SFC trade prices, rounded
to one decimal point past the precision of the underlying market.

(n)

EXPIRATION VALUE – The Expiration Value is the Silver Index Value as releasedby the Source Agency at Expiration.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source

18 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

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agency, the Settlement Date will be delayed until the Underlying number is released
for the Series.
SILVER BINARY CONTRACTS(a)

SCOPE –These Rules shall apply to the Class of Contracts referred to as the Silver
Binary Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the price, cents pertroy ounce (in US Currency), of Silver obtained from the Silver Futures Contracts(“SFC”) traded on the COMEX Division of the New York Mercantile Exchange(“NYMEX”®19). The SFC trade prices that will be used to for the Underlying will betaken from the March, May, July, September, or December SFC delivery months(each a “SFC Delivery Month”). The Start and End Date for which Nadex will use a
specific delivery month as the Underlying will be set based on the Settlement dateof the Underlying futures contract. The date on which a new delivery month will be
used as the Underlying for Nadex contracts (i.e. “Start Date”) is one calendar day
after the End Date for the previous delivery month contract. The date on which a
new delivery month will be used as the Underlying for Nadex contracts (i.e. “Start
Date”) is one calendar day after the End Date for the previous delivery monthcontract. The last day on which a delivery month will be used as the Underlying for
Nadex contracts (i.e. “End Date”) is the last Friday Business Day of the month
preceding the month of the Underlying futures contracts Expiration Date unlessthe last Friday business day of the month preceding the month of theUnderlying futures contracts Expiration Date is equal to the last business
day of the month preceding the month of the Underlying futures contracts
Expiration Date then the “End Date” will be the second to last Friday. For
example, the Comex Silver September 2023 futures have an Expiration Date of
September 27, 2023. The last day on which the Silver September 2023 futures
prices will be used as the Underlying for Nadex contracts and to calculate theExpiration Value on the Expiration Date for the relevant Silver contracts will be thelast Friday Business Day of the preceding month, August 2023. Therefore, the End
Date for using Comex Silver September 2023 futures will be August 25, 2023 andthe Start Date for the next delivery month, Comex Silver December 2023 futures,will be August 26, 2023. The second example, the Comex Silver December

2024 futures have an Expiration Date of December 27, 2024. The last day
on which the Silver December 2024 futures prices will be used as theUnderlying for Nadex contracts and to calculate the Expiration Value on the
19 NYMEX® is a registered service mark of the New York Mercantile Exchange, Inc. COMEX® is a registered service

mark of the Commodity Exchange, Inc. Nadex is not affiliated with the New York Mercantile Exchange, Inc. or the
Commodity Exchange, Inc. and neither the New York Mercantile Exchange, the Commodity Exchange, Inc., nor theiraffiliates, sponsor or endorse Nadex or any of its products in any way.

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Expiration Date for the relevant Silver contracts will be the second to last
Friday business day of the preceding month, November 2024. Therefore,
the End Date for using Comex Silver December 2024 futures will be
November 22, 2024, and the Start Date for the next delivery month, Comex
Silver February 2025 futures, will be November 23, 2024.20(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the Silver Binary Contract,
the Payout Criteria for the Contracts will be set as follows:(i)

INTRADAY SILVER BINARY CONTRACTS(1)

EXPIRATION TIME – 10:00AM, 11:00AM, 12:00PM, 1:00PM ET
CLOSE

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.06.

(3)

NUMBER OF STRIKE LEVELS LISTED - Nine (9) strike levels will belisted for each Intraday Silver Binary Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 0.01
as reported by the Source Agency. Four (4) strike levels will be
generated above Binary Contract Z at an interval of 0.06, and four(4) strike levels will be generated below Binary Contract Z at aninterval of 0.06 (e.g. Z – 0.06; Z; Z + 0.06). The Contract will have a
Payout Criterion of greater than the strike level value.

20 Weekly contracts listed on a Monday during a week containing an Underlying futures rollover date will be listed using

the Underlying futures month scheduled to be used to determine the settlement value on the day the contract expires.
For example, the End Date for which Nadex will use the Comex Silver March 2014 Underlying futures to determine thesettlement value is February 26, 2014. February 26, 2014 is a Wednesday, however, and any Nadex weekly contracts
listed for this roll week and expiring on Friday, February 28, 2014, will be listed using the Comex Silver May 2014 futures
as its Underlying, as May is the futures month scheduled to be used to determine the Settlement Value of the Nadex
weekly contract on its expiration date. Therefore, the Start Date for the Comex Silver May 2014 futures will be Monday,
February 24, 2014 for any Nadex weekly contracts listed on this date.

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(ii)

Nadex may list additional Silver Binary Contract with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for Silver Binary Contracts shall be$0.25.

(g)

POSITION LIMIT – The Position Limits for Silver Binary Contracts shall be 2,000
Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for Silver
Binary Contracts for contracted Market Makers shall be 4,000 Contracts per strikelevel.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Expiration Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the same date as the Expiration
Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Silver price is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney Silver Binary Contract is $100.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of Silver releasedby the Source Agency on the Expiration Date. The Expiration Value is calculated by
the Source Agency by taking all SFC trade prices occurring in the ten (10) seconds
leading up to the close of trading of the Silver Binary Contract, provided at least
twenty-five (25) trade prices are captured during the ten (10) second period,
removing the highest twenty (20) percent of SFC trade prices and the lowest
twenty (20) percent of SFC trade prices from the data set21, and using theremaining SFC trade prices to calculate the Expiration Value. The calculation used
is a simple average of the remaining SFC trade prices in the data set, rounded to
one decimal point past the precision of the underlying market. In the event the time
it takes to collect at least twenty-five (25) SFC trade prices exceeds the ten (10)seconds just prior to the close of trading of the Silver Binary Contract, theExpiration Value is calculated by the Source Agency by taking the last twenty-five

21 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

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(25) SFC trade prices just prior to the close of trading of the Silver Binary Contract
removing the highest five (5) SFC trade prices and the lowest five (5) SFC trade
prices, and using the remaining fifteen (15) SFC trade prices to calculate theExpiration Value. The calculation used is a simple average of all fifteen (15) SFC
trade prices, rounded to one decimal point past the precision of the underlying
market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series. If there are less than 250 SFC trade prices available during
a single trading day prior to the issuance of a new Silver Contract Nadex may
switch to the next available SFC Delivery Month that provides at least 250 SFC
trade prices.
CRUDE OIL VARIABLE PAYOUT CONTRACTS

RULE 12.8.1

CRUDE OIL “CALL SPREAD” VARIABLE PAYOUT CONTRACTS(a)

SCOPE –These Rules shall apply to the Class of Contracts referred to as the Crude
Oil Call Spread Variable Payout Contracts issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is WTI Light, Sweet
Crude Oil price per barrel (in US dollars), obtained from the WTI Light, Sweet Crude
Oil Futures contracts (“CFC”) traded on the New York Mercantile Exchange(“NYMEX®”22). The CFC trade prices that will be used for the Underlying will betaken from all twelve CFC delivery months: January, February, March, April, May,
June, July, August, September, October, November, or December (each a “CFC
Delivery Month”). The date on which a new delivery month will be used as theUnderlying for Nadex contracts (i.e. “Start Date”) is one calendar day after the End
Date for the previous delivery month contract. The last day on which a delivery
month will be used as the Underlying for Nadex contracts (i.e. “End Date”) is the
Friday of the week preceding the Underlying futures contracts Expiration Date. If
the Underlying futures contracts Expiration Date falls on a Monday, the End Datefor that specific delivery month will be the Friday of the week preceding the weekof the Underlying futures contracts Expiration Date, i.e. not the Friday that is one
Business Day prior to the Monday Expiration Date. For example, the Nymex Crude
Oil March 2012 futures have an Expiration Date of February 21, 2012. The last day
on which the Crude Oil March 2012 futures prices will be used as the Underlying

22 NYMEX® is a registered service mark of the New York Mercantile Exchange, Inc. COMEX® is a registered service

mark of the Commodity Exchange, Inc. Nadex is not affiliated with the New York Mercantile Exchange, Inc. or the
Commodity Exchange, Inc. and neither the New York Mercantile Exchange, the Commodity Exchange, Inc., nor theiraffiliates, sponsor or endorse Nadex or any of its products in any way.

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for Nadex contracts and to calculate the Expiration Value on the Expiration Datefor the relevant Crude Oil contracts will be the Friday of the preceding week.
Therefore, the End Date for using Nymex Crude Oil March 2012 futures will be
February 17, 2012 and the Start Date for the next delivery month, Nymex Crude Oil
April 2012 futures, will be February 18, 2012. The Nymex Crude Oil November 2012
futures, however, have an Expiration Date of Monday, October 22, 2012. The last
day on which the Crude Oil November 2012 futures prices will be as the Underlying
for Nadex contracts and to calculate the Expiration Value on the Expiration Datefor the relevant Crude Oil contracts will be October 12, 2012, rather than October
19, 2012, and the Start Date for the next delivery month, Nymex Crude Oil
December 2012 futures will be October 13, 2012.
(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the Crude Oil
Variable Payout Contract, the Payout Criteria for the Contracts will be set as
follows;(i)

DAILY CRUDE OIL CALL SPREAD VARIABLE PAYOUT CONTRACTS, 2:30
PM ET CLOSE - At the commencement of trading in a Daily Crude Oil Call
Spread Variable Payout Contract, referred to as a ‘Call Spread’, Nadex shalllist one (1) Call Spread Contract, which conforms to the Payout Criteria
listed below:
(1)

(2)

(ii)

DAILY CRUDE OIL CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 5.

B.

FLOOR – The Floor shall be X – 5.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

In each case, “X” equals the last Crude Oil price, as reported by the
Source Agency, rounded to the nearest 1.

DAILY CRUDE OIL CALL SPREAD CONTRACTS, 2:30 PM ET CLOSE - Nadex
shall list a set of three (3) Call Spread Contracts with overlapping ranges,
which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 5.

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(iii)(iv)

317083742.2(2)

CONTRACT 2: The Ceiling shall be X + 2.50; The Floor shall be X –
2.50.

(3)

CONTRACT 3: The Ceiling shall be X + 5; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(5)

In each case, “X” equals the last Crude Oil price, as reported by the
Source Agency, rounded to the nearest 1.

INTRADAY CRUDE OIL CALL SPREAD CONTRACTS, 8AM ET to 2:30 PM ET
CLOSE - Nadex shall list a set of three (3) Call Spread Contracts withoverlapping ranges, which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 3.

(2)

CONTRACT 2: The Ceiling shall be X + 1.50; The Floor shall be X –
1.50.

(3)

CONTRACT 3: The Ceiling shall be X + 3; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(5)

In each case, “X” equals the last Crude Oil price, as reported by the
Source Agency, rounded to the nearest 0.50.

INTRADAY 2-HOUR CRUDE OIL CALL SPREAD CONTRACTS, 10:00AM,
11:00AM, 12:00PM, 1:00PM and 2:00PM ET CLOSE - Nadex shall list a setof five (5) Call Spread Contracts that open 2 hours prior to the statedclosing time(s) above with overlapping ranges, which conform to the
Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X – 0.75; The Floor shall be X –
2.25.

(2)

CONTRACT 2: The Ceiling shall be X; The Floor shall be X – 1.50.

(3)

CONTRACT 3: The Ceiling shall be X + 0.75; The Floor shall be X –
0.75.

(4)

CONTRACT 4: The Ceiling shall be X + 1.50; The Floor shall be X.

(5)

CONTRACT 5: The Ceiling shall be X + 2.25; The Floor shall be X +
0.75.

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.
117
117

(7)

(v)

In each case, “X” equals the last Crude Oil price, as reported by the
Source Agency, rounded to the nearest 0.25.

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for Crude Oil Call Spread Contracts shallbe 0.01.

(g)

POSITION LIMIT – The Position Limits for Crude Oil Call Spread Contracts shall be
250 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
Crude Oil Call Spread Variable Payout Contracts for contracted Market Makers
shall be 500 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date of the Contract is the same date as
the Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Crude Oil Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of Crude Oilreleased by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all CFC trade prices occurring in the ten(10) seconds leading up to the close of trading of the Crude Oil Call Spread
Contract, provided at least twenty-five (25) trade prices are captured during the ten(10) second period, removing the highest twenty (20) percent of CFC trade prices
and the lowest twenty (20) percent of CFC trade prices in the data set23, and using
the remaining CFC trade prices in the data set, to calculate the Expiration Value.
The calculation used is a simple average of the remaining CFC trade prices in the

23 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

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data set, rounded to one decimal point past the precision of the underlying market.
In the event the time it takes to collect at least twenty-five (25) CFC trade prices
exceeds the ten (10) seconds just prior to the close of trading of the Crude Oil Call
Spread Contract, the Expiration Value is calculated by the Source Agency by taking
the last twenty-five (25) CFC trade prices just prior to the close of trading of the
Crude Oil Call Spread Contract removing the highest five (5) CFC trade prices andthe lowest five (5) CFC trade prices, and using the remaining fifteen (15) CFC trade
prices to calculate the Expiration Value. The calculation used is a simple averageof all fifteen (15) CFC trade prices, rounded to one decimal point past the precisionof the underlying market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.

RULE 12.8.2

CRUDE OIL “TOUCH BRACKET” VARIABLE PAYOUT CONTRACTS(a)

SCOPE –These Rules shall apply to the Class of Contracts referred to as the Crude
Oil Touch Bracket Variable Payout Contracts issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is WTI Light, Sweet
Crude Oil price per barrel (in US dollars), obtained from the WTI Light, Sweet Crude
Oil Futures contracts (“CFC”) traded on the New York Mercantile Exchange(“NYMEX®”24). The CFC trade prices that will be used for the Underlying will betaken from all twelve CFC delivery months: January, February, March, April, May,
June, July, August, September, October, November, or December (each a “CFC
Delivery Month”). The date on which a new delivery month will be used as theUnderlying for Nadex contracts (i.e. “Start Date”) is one calendar day after the End
Date for the previous delivery month contract. The last day on which a delivery
month will be used as the Underlying for Nadex contracts (i.e. “End Date”) is the
Friday of the week preceding the Underlying futures contracts Expiration Date. If
the Underlying futures contracts Expiration Date falls on a Monday, the End Datefor that specific delivery month will be the Friday of the week preceding the weekof the Underlying futures contracts Expiration Date, i.e. not the Friday that is one
Business Day prior to the Monday Expiration Date. For example, the Nymex Crude
Oil March 2012 futures have an Expiration Date of February 21, 2012. The last day
on which the Crude Oil March 2012 futures prices will be used as the Underlying
for Nadex contracts and to calculate the Expiration Value on the Expiration Date

24 NYMEX® is a registered service mark of the New York Mercantile Exchange, Inc. COMEX® is a registered service

mark of the Commodity Exchange, Inc. Nadex is not affiliated with the New York Mercantile Exchange, Inc. or the
Commodity Exchange, Inc. and neither the New York Mercantile Exchange, the Commodity Exchange, Inc., nor theiraffiliates, sponsor or endorse Nadex or any of its products in any way.

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119for the relevant Crude Oil contracts will be the Friday of the preceding week.
Therefore, the End Date for using Nymex Crude Oil March 2012 futures will be
February 17, 2012 and the Start Date for the next delivery month, Nymex Crude Oil
April 2012 futures, will be February 18, 2012. The Nymex Crude Oil November 2012
futures, however, have an Expiration Date of Monday, October 22, 2012. The last
day on which the Crude Oil November 2012 futures prices will be as the Underlying
for Nadex contracts and to calculate the Expiration Value on the Expiration Datefor the relevant Crude Oil contracts will be October 12, 2012, rather than October
19, 2012, and the Start Date for the next delivery month, Nymex Crude Oil
December 2012 futures will be October 13, 2012.
(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the Crude Oil
Touch Bracket Contracts, the Payout Criteria for the Contracts will be set as
follows:(i)

WEEKLY CRUDE OIL TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Close Time is the earlier of 2:30 PM ET on the last Trade Day of the contract
listing, or when the Crude Oil Index Value is equal to or greater than the
Ceiling, or equal to or less than the Floor. Nadex shall list a set of four (4)Touch Bracket Variable Payout Contracts, referred to as a “Touch Bracket”,
that open at 6:00PM ET on the first Trade Day of the week, with overlapping
ranges, which conform to the Payout Criteria listed below.
(1)

CONTRACT 1: The Ceiling shall be X + 1.2; The Floor shall be X –
0.3.

(2)

CONTRACT 1: The Ceiling shall be X + 0.9; The Floor shall be X –
0.6.

(3)

CONTRACT 1: The Ceiling shall be X + 0.6; The Floor shall be X –
0.9.

(4)

CONTRACT 1: The Ceiling shall be X + 0.3; The Floor shall be X –
1.2.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(6)

In each case, “X” equals the last Crude Oil price, as reported by the
Source Agency, rounded to the nearest 0.25.
120317083742.2

120

(ii)

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 1.2 (or 0.3) and a Floor of X – 0.3 (or 1.2)
where X equals the Ceiling (or Floor) of the Touch Bracket that expired
early. The newly listed Touch Bracket will have the same Last Trade Day as
originally established for the expired Touch Bracket and the same Dollar
Multiplier as the expired Touch Bracket.

(f)

MINIMUM TICK – The Minimum Tick size for Crude Oil Touch Bracket Variable
Payout Contracts shall be 0.01.

(g)

POSITION LIMIT – The Position Limit for Crude Oil Touch Bracket Variable Payout
Contracts shall be 100 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
Crude Oil Touch Bracket Variable Payout Contracts for contracted Market Makers
shall be 100,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date of the Contract is the same date as
the Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the Crude Oil Touch Bracket Contract Expiration Value is released by the
Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

CRUDE OIL INDEX VALUE – The Source Agency shall calculate and produce a
Crude Oil Index Value once each second throughout the life of the Crude Oil
Variable Payout contracts. That is, each second the Source Agency will calculatea Crude Oil Index Value by taking all CFC trade prices occurring in the ten (10)seconds leading up to the Calculation Time, provided at least twenty-five (25) trade
prices are captured during the ten (10) second period, removing the highest twenty(20) percent of CFC trade prices and the lowest twenty (20) percent of CFC trade
prices in the data set25, and using the remaining CFC trade prices in the data set,

25 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

121
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121to calculate the Index Value. The calculation used is a simple average of theremaining CFC trade prices in the data set, rounded to one decimal point past the
precision of the underlying market. In the event the time it takes to collect at least
twenty-five (25) CFC trade prices exceeds the ten (10) seconds just prior to the
Calculation Time, the Index Value is calculated by the Source Agency by taking thelast twenty-five (25) CFC trade prices just prior to the Calculation Time removing
the highest five (5) CFC trade prices and the lowest five (5) CFC trade prices, andusing the remaining fifteen (15) CFC trade prices to calculate the Index Value. The
calculation used is a simple average of all fifteen (15) CFC trade prices, rounded
to one decimal point past the precision of the underlying market.
(n)

EXPIRATION VALUE – The Expiration Value is the Crude Oil Index Value as
released by the Source Agency at Expiration.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
agency, the Settlement Date will be delayed until the Underlying number is released
for the Series.
CRUDE OIL BINARY CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the Crude
Oil Binary Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is WTI Light, Sweet
Crude Oil price per barrel (in US dollars), obtained from the WTI Light, Sweet Crude
Oil Futures contracts (“CFC”) traded on the New York Mercantile Exchange(“NYMEX®”26). The CFC trade prices that will be used for the Underlying will betaken from all twelve CFC delivery months: January, February, March, April, May,
June, July, August, September, October, November, or December (each a “CFC
Delivery Month”). The date on which a new delivery month will be used as theUnderlying for Nadex contracts (i.e. “Start Date”) is one calendar day after the End
Date for the previous delivery month contract. The last day on which a delivery
month will be used as the Underlying for Nadex contracts (i.e. “End Date”) is the
Friday of the week preceding the Underlying futures contracts Expiration Date. If
the Underlying futures contracts Expiration Date falls on a Monday, the End Datefor that specific delivery month will be the Friday of the week preceding the weekof the Underlying futures contracts Expiration Date, i.e. not the Friday that is one
Business Day prior to the Monday Expiration Date. For example, the Nymex Crude

26 NYMEX® is a registered service mark of the New York Mercantile Exchange, Inc. COMEX® is a registered service

mark of the Commodity Exchange, Inc. Nadex is not affiliated with the New York Mercantile Exchange, Inc. or the
Commodity Exchange, Inc. and neither the New York Mercantile Exchange, the Commodity Exchange, Inc., nor theiraffiliates, sponsor or endorse Nadex or any of its products in any way.

122
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122Oil March 2012 futures have an Expiration Date of February 21, 2012. The last day
on which the Crude Oil March 2012 futures prices will be used as the Underlying
for Nadex contracts and to calculate the Expiration Value on the Expiration Datefor the relevant Crude Oil contracts will be the Friday of the preceding week.
Therefore, the End Date for using Nymex Crude Oil March 2012 futures will be
February 17, 2012 and the Start Date for the next delivery month, Nymex Crude Oil
April 2012 futures, will be February 18, 2012. The Nymex Crude Oil November 2012
futures, however, have an Expiration Date of Monday, October 22, 2012. The last
day on which the Crude Oil November 2012 futures prices will be as the Underlying
for Nadex contracts and to calculate the Expiration Value on the Expiration Datefor the relevant Crude Oil contracts will be October 12, 2012, rather than October
19, 2012, and the Start Date for the next delivery month, Nymex Crude Oil
December 2012 futures will be October 13, 2012.
(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the Crude Oil Binary
Contract, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY CRUDE OIL BINARY CONTRACTS(1)

EXPIRATION TIME – 2:30PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 1.00.

(3)

NUMBER OF STRIKE LEVELS LISTED - Thirteen (13) strike levels will
be listed for each Weekly Crude Oil Binary Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Binary Contract “W” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.25 or 0.75 as reported by the Source Agency. Six (6) strikelevels will be generated above Binary Contract W at an interval of
1.00, and six (6) strike levels will be generated below Binary
Contract W at an interval of 1.00 (e.g. W – 1.00; W; W + 1.00). The
Contract will have a Payout Criterion of greater than the strike levelvalue.
123

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123

(ii)

(iii)

DAILY CRUDE OIL BINARY CONTRACTS(1)

EXPIRATION TIME – 2:30PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.40.

(3)

NUMBER OF STRIKE LEVELS LISTED – Twenty-three (23) strikelevels will be listed for each Daily Crude Oil Binary Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Binary Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 0.5
as reported by the Source Agency. Eleven (11) strike levels will be
generated above Binary Contract Y at an interval of 0.40, and eleven(11) strike levels will be generated below Binary Contract Y at aninterval of 0.40 (e.g. Y – 0.40; Y; Y + 0.40). The Contract will have a
Payout Criterion of greater than the strike level value.

INTRADAY CRUDE OIL BINARY CONTRACTS(1)

EXPIRATION TIME – 10:00AM, 11:00AM, 12:00PM, 1:00PM,
2:00PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.2.

(3)

NUMBER OF STRIKE LEVELS LISTED - Nine (9) strike levels will belisted for each Intraday Crude Oil Binary Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 0.01
as reported by the Source Agency. Four (4) strike levels will be
generated above Binary Contract Z at an interval of 0.2, and four (4)strike levels will be generated below Binary Contract Z at an intervalof 0.2 (e.g. Z – 0.2; Z; Z + 0.2). The Contract will have a Payout
Criterion of greater than the strike level value.

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(iv)

Nadex may list additional Crude Oil Binary Contract with different ranges
of Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for the Crude Oil Binary Contract shallbe $0.25.

(g)

POSITION LIMIT – The Position Limits for the Crude Oil Binary Contracts shall be
2,500 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
Crude Oil Binary Contracts for contracted Market Makers shall be 5,000 Contracts
per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Expiration Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date on which the Crude Oil
Binary Contract as reported by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Crude Oil price or level is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on the Settlement Date. The Settlement Value of an in
the money Crude Oil Binary Contract is $100.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of Crude Oilreleased by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all CFC trade prices occurring in the ten(10) seconds leading up to the close of trading of the Crude Oil Binary Contract,provided at least twenty-five (25) trade prices are captured during the ten (10)second period, removing the highest twenty (20) percent of CFC trade prices andthe lowest twenty (20) percent of CFC trade prices in the data set27, and using theremaining CFC trade prices in the data set, to calculate the Expiration Value. The
calculation used is a simple average of the remaining CFC trade prices in the dataset, rounded to one decimal point past the precision of the underlying market. In
the event the time it takes to collect at least twenty-five (25) CFC trade prices
exceeds the ten (10) seconds just prior to the close of trading of the Crude Oil
Binary Contract, the Expiration Value is calculated by the Source Agency by taking

27 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

125
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125the last twenty-five (25) CFC trade prices just prior to the close of trading of the
Crude Oil Binary Contract removing the highest five (5) CFC trade prices and thelowest five (5) CFC trade prices, and using the remaining fifteen (15) CFC trade
prices to calculate the Expiration Value. The calculation used is a simple averageof all fifteen (15) CFC trade prices, rounded to one decimal point past the precisionof the underlying market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
NATURAL GAS VARIABLE PAYOUT CONTRACTS

RULE 12.10.1 NATURAL GAS “CALL SPREAD” VARIABLE PAYOUT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the
Natural Gas Call Spread Variable Payout Contracts issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Natural Gas priceper mmBtu (millions British thermal units, in US dollars), obtained from the Natural
Gas Futures contracts (“NFC”) traded on the New York Mercantile Exchange(“NYMEX”®).28 The NFC trade prices that will be used for the Underlying will betaken from all twelve NFC delivery months: January, February, March, April, May,
June, July, August, September, October, November, or December (each an “NFC
Delivery Month”). The date on which a new delivery month will be used as theUnderlying for Nadex contracts (i.e. “Start Date”) is one calendar day after the End
Date for the previous delivery month contract. The last day on which a delivery
month will be used as the Underlying for Nadex contracts (i.e. “End Date”) is the
Friday of the week preceding the Underlying futures contracts Expiration Date. If
the Underlying futures contracts Expiration Date falls on a Monday, the End Datefor that specific delivery month will be the Friday of the week preceding the weekof the Underlying futures contracts Expiration Date, i.e. not the Friday that is one
Business Day prior to the Monday Expiration Date. For example, the Nymex Natural
Gas February 2012 futures have an Expiration Date of January 27, 2012. The last
day on which the Natural Gas February 2012 futures prices will be used as theUnderlying for Nadex contracts and to calculate the Expiration Value on the
Expiration Date for the relevant Natural Gas contracts will be the Friday of thepreceding week. Therefore, the End Date for using Nymex Natural Gas February

28 NYMEX® is a registered service mark of the New York Mercantile Exchange, Inc. COMEX® is a registered service

mark of the Commodity Exchange, Inc. Nadex is not affiliated with the New York Mercantile Exchange, Inc. or the
Commodity Exchange, Inc. and neither the New York Mercantile Exchange, the Commodity Exchange, Inc., nor theiraffiliates, sponsor or endorse Nadex or any of its products in any way.

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1262012 futures will be January 20, 2012 and the Start Date for the next delivery
month, Nymex Natural Gas March 2012 futures, will be January 21, 2012. The
Nymex Natural Gas March 2012 futures, however, have an Expiration Date of
Monday, February 27, 2012. The last day on which the Natural Gas March 2012
futures prices will be as the Underlying for Nadex contracts and to calculate theExpiration Value on the Expiration Date for the relevant Natural Gas contracts will
be February 17, 2012, rather than February 24, 2012, and the Start Date for the next
delivery month, Nymex Natural Gas April 2012 futures will be February 18, 2012.
(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the Natural Gas
Call Spread Variable Payout Contract, the Payout Criteria for the Contracts will be
set as follows;(i)

DAILY NATURAL GAS CALL SPREAD VARIABLE PAYOUT CONTRACTS,
2:30 PM ET CLOSE - At the commencement of trading in a Daily Natural
Gas Call Spread Variable Payout Contract, referred to as a ‘Call Spread’,
Nadex shall list one (1) Call Spread Payout Contract, which conforms to
the Payout Criteria listed below:
(1)

(2)

(ii)

DAILY NATURAL GAS CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 0.5.

B.

FLOOR – The Floor shall be X – 0.5.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1000.

In each case, “X” equals the last Natural Gas price, as reported by
the Source Agency, rounded to the nearest 0.1.

DAILY NATURAL GAS CALL SPREAD CONTRACTS, 2:30 PM ET CLOSE Nadex shall list a set of three (3) Call Spread Contracts with overlapping
ranges, which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 0.5.

(2)

CONTRACT 2: The Ceiling shall be X + 0.25; The Floor shall be X –
0.25.

(3)

CONTRACT 3: The Ceiling shall be X + 0.5; The Floor shall be X.
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(iii)

(iv)

(v)

(f)

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1000.

(5)

In each case, “X” equals the last Natural Gas price, as reported by
the Source Agency, rounded to the nearest 0.1.

INTRADAY NATURAL GAS CALL SPREAD CONTRACTS, 8AM ET to 2:30 PM
ET CLOSE - Nadex shall list a set of three (3) Call Spread Contracts withoverlapping ranges, which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 0.4.

(2)

CONTRACT 2: The Ceiling shall be X + 0.2; The Floor shall be X –
0.2.

(3)

CONTRACT 3: The Ceiling shall be X + 0.4; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1000.

(5)

In each case, “X” equals the last Natural Gas price, as reported by
the Source Agency, rounded to the nearest 0.1.

INTRADAY 2-HOUR NATURAL GAS CALL SPREAD CONTRACTS, 10:00AM,
11:00AM, 12:00PM, 1:00PM and 2:00PM ET CLOSE - Nadex shall list a setof three (3) Call Spread Contracts that open 2 hours prior to the statedclosing time(s) above with overlapping ranges, which conform to the
Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 0.2.

(2)

CONTRACT 2: The Ceiling shall be X + 0.1; The Floor shall be X –
0.1.

(3)

CONTRACT 3: The Ceiling shall be X + 0.2; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1000.

(5)

In each case, “X” equals the last Natural Gas price, as reported by
the Source Agency, rounded to the nearest 0.05.

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

MINIMUM TICK – The Minimum Tick size for Natural Gas Call Spread Contracts
shall be 0.001.
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(g)

POSITION LIMIT – The Position Limits for Natural Gas Call Spread Contracts shallbe 250 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
Natural Gas Call Spread Variable Payout Contracts for contracted Market Makers
shall be 500 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date for this Contract is the same dateas the Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the Natural Gas Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EXPIRATION VALUE –The Expiration Value is the price or value of Natural Gas
Index Value released by the Source Agency at Expiration on the Expiration Date.
The Expiration Value is calculated by the Source Agency by taking all NFC trade
prices occurring in the ten (10) seconds leading up to the close of trading of the
Natural Gas Call Spread Contract, provided at least twenty-five (25) trade prices
are captured during the ten (10) second period, removing the highest twenty (20)percent of NFC trade prices and the lowest twenty (20) percent of NFC trade prices
in the data set29, and using the remaining NFC trade prices in the data set, tocalculate the Expiration Value. The calculation used is a simple average of all theremaining NFC trade prices in the data set, rounded to one decimal point past the
precision of the underlying market. In the event the time it takes to collect at least
twenty-five (25) NFC trade prices exceeds the ten (10) seconds just prior to theclose of trading of the Natural Gas Call Spread Contract, the Expiration Value iscalculated by the Source Agency by taking the last twenty-five (25) NFC trade
prices just prior to the close of trading of the Natural Gas Call Spread Contract
removing the highest five (5) NFC trade prices and the lowest five (5) NFC trade
prices, and using the remaining fifteen (15) NFC trade prices to calculate theExpiration Value. The calculation used is a simple average of all fifteen (15) NFC

29 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

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129trade prices, rounded to one decimal point past the precision of the underlying
market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.

RULE 12.10.2 NATURAL GAS “TOUCH BRACKET” VARIABLE PAYOUT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the
Natural Gas Touch Bracket Variable Payout Contracts issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Natural Gas priceper mmBtu (millions British thermal units, in US dollars), obtained from the Natural
Gas Futures contracts (“NFC”) traded on the New York Mercantile Exchange(“NYMEX”®).30 The NFC trade prices that will be used for the Underlying will betaken from all twelve NFC delivery months: January, February, March, April, May,
June, July, August, September, October, November, or December (each an “NFC
Delivery Month”). The date on which a new delivery month will be used as theUnderlying for Nadex contracts (i.e. “Start Date”) is one calendar day after the End
Date for the previous delivery month contract. The last day on which a delivery
month will be used as the Underlying for Nadex contracts (i.e. “End Date”) is the
Friday of the week preceding the Underlying futures contracts Expiration Date. If
the Underlying futures contracts Expiration Date falls on a Monday, the End Datefor that specific delivery month will be the Friday of the week preceding the weekof the Underlying futures contracts Expiration Date, i.e. not the Friday that is one
Business Day prior to the Monday Expiration Date. For example, the Nymex Natural
Gas February 2012 futures have an Expiration Date of January 27, 2012. The last
day on which the Natural Gas February 2012 futures prices will be used as theUnderlying for Nadex contracts and to calculate the Expiration Value on the
Expiration Date for the relevant Natural Gas contracts will be the Friday of thepreceding week. Therefore, the End Date for using Nymex Natural Gas February
2012 futures will be January 20, 2012 and the Start Date for the next delivery
month, Nymex Natural Gas March 2012 futures, will be January 21, 2012. The
Nymex Natural Gas March 2012 futures, however, have an Expiration Date of
Monday, February 27, 2012. The last day on which the Natural Gas March 2012
futures prices will be as the Underlying for Nadex contracts and to calculate theExpiration Value on the Expiration Date for the relevant Natural Gas contracts will

30 NYMEX® is a registered service mark of the New York Mercantile Exchange, Inc. COMEX® is a registered service

mark of the Commodity Exchange, Inc. Nadex is not affiliated with the New York Mercantile Exchange, Inc. or the
Commodity Exchange, Inc. and neither the New York Mercantile Exchange, the Commodity Exchange, Inc., nor theiraffiliates, sponsor or endorse Nadex or any of its products in any way.

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130be February 17, 2012, rather than February 24, 2012, and the Start Date for the next
delivery month, Nymex Natural Gas April 2012 futures will be February 18, 2012.
(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the Natural Gas
Touch Bracket Contracts, the Payout Criteria for the Contracts will be set as
follows:(i)(ii)

WEEKLY NATURAL GAS TOUCH BRACKET VARIABLE PAYOUT
CONTRACTS, Close Time is the earlier of 2:30 PM ET on the last Trade Dayof the contract listing, or when the Natural Gas Index Value is equal to or
greater than the Ceiling, or equal to or less than the Floor. Nadex shall lista set of four (4) Touch Bracket Variable Payout Contracts, referred to as a
“Touch Bracket”, that open at 3:00AM ET on the first Trade Day of the week,with overlapping ranges, which conform to the Payout Criteria listed below.
(1)

CONTRACT 1: The Ceiling shall be X + 0.20; The Floor shall be X –
0.05.

(2)

CONTRACT 1: The Ceiling shall be X + 0.15; The Floor shall be X –
0.10.

(3)

CONTRACT 1: The Ceiling shall be X + 0.10; The Floor shall be X –
0.15.

(4)

CONTRACT 1: The Ceiling shall be X + 0.05; The Floor shall be X –
0.20.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(6)

In each case, “X” equals the last Natural Gas price, as reported by
the Source Agency, rounded to the nearest 0.25.

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 0.20 (or 0.05) and a Floor of X – 0.05 (or 0.20)
where X equals the Ceiling (or Floor) of the Touch Bracket that expired
early. The newly listed Touch Bracket will have the same Last Trade Day as
originally established for the expired Touch Bracket and the same Dollar
Multiplier as the expired Touch Bracket.

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(f)

MINIMUM TICK – The Minimum Tick size for Natural Gas Touch Bracket Variable
Payout Contracts shall be 0.001.

(g)

POSITION LIMIT – The Position Limit for Natural Gas Touch Bracket Variable
Payout Contracts shall be 100 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
Natural Gas Touch Bracket Variable Payout Contracts for contracted Market
Makers shall be 100,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date of the Contract is the same date as
the Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the Natural Gas Touch Bracket Contract Expiration Value is released by the
Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

NATURAL GAS INDEX VALUE – The Source Agency shall calculate and produce a
Natural Gas Index Value once each second throughout the life of the Natural Gas
Variable Payout contracts. That is, each second the Source Agency will calculatea Natural Gas Index Value by taking all NFC trade prices occurring in the ten (10)seconds leading up to the Calculation Time, provided at least twenty-five (25) trade
prices are captured during the ten (10) second period, removing the highest twenty(20) percent of SFC trade prices and the lowest twenty (20) percent of NFC trade
prices in the data set31, and using the remaining NFC trade prices in the data set,to calculate the Index Value. The calculation used is a simple average of theremaining NFC trade prices in the data set, rounded to one decimal point past the
precision of the underlying market. In the event the time it takes to collect at least
twenty-five (25) NFC trade prices exceeds the ten (10) seconds just prior to the
Calculation Time, the Index Value is calculated by the Source Agency by taking thelast twenty-five (25) NFC trade prices just prior to the Calculation Time, removing
the highest five (5) NFC trade prices and the lowest five (5) NFC trade prices, and

31 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

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132using the remaining fifteen (15) NFC trade prices to calculate the Index Value. The
calculation used is a simple average of all fifteen (15) NFC trade prices, rounded
to one decimal point past the precision of the underlying market.
(n)

EXPIRATION VALUE – The Expiration Value is the Natural Gas Index Value as
released by the Source Agency at Expiration.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
agency, the Settlement Date will be delayed until the Underlying number is released
for the Series.
NATURAL GAS BINARY CONTRACTS(a)

SCOPE –These Rules shall apply to the Class of Contracts referred to as the
Natural Gas Binary Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Natural Gas priceper mmBtu (millions British thermal units, in US dollars), obtained from the
Physical Natural Gas Futures contracts (“NFC”) traded on the New York Mercantile
Exchange (“NYMEX”®32). The NFC trade prices that will be used for the Underlying
will be taken from all twelve NFC delivery months: January, February, March, April,May, June, July, August, September, October, November, or December (each an“NFC Delivery Month”). The date on which a new delivery month will be used as
the Underlying for Nadex contracts (i.e. “Start Date”) is one calendar day after the
End Date for the previous delivery month contract. The last day on which a delivery
month will be used as the Underlying for Nadex contracts (i.e. “End Date”) is the
Friday of the week preceding the Underlying futures contracts Expiration Date. If
the Underlying futures contracts Expiration Date falls on a Monday, the End Datefor that specific delivery month will be the Friday of the week preceding the weekof the Underlying futures contracts Expiration Date, i.e. not the Friday that is one
Business Day prior to the Monday Expiration Date. For example, the Nymex Natural
Gas February 2012 futures have an Expiration Date of January 27, 2012. The last
day on which the Natural Gas February 2012 futures prices will be used as theUnderlying for Nadex contracts and to calculate the Expiration Value on the
Expiration Date for the relevant Natural Gas contracts will be the Friday of thepreceding week. Therefore, the End Date for using Nymex Natural Gas February
2012 futures will be January 20, 2012 and the Start Date for the next delivery
month, Nymex Natural Gas March 2012 futures, will be January 21, 2012. The

32 NYMEX® is a registered service mark of the New York Mercantile Exchange, Inc. COMEX® is a registered service

mark of the Commodity Exchange, Inc. Nadex is not affiliated with the New York Mercantile Exchange, Inc. or the
Commodity Exchange, Inc. and neither the New York Mercantile Exchange, the Commodity Exchange, Inc., nor theiraffiliates, sponsor or endorse Nadex or any of its products in any way.

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133

Nymex Natural Gas March 2012 futures, however, have an Expiration Date of
Monday, February 27, 2012. The last day on which the Natural Gas March 2012
futures prices will be as the Underlying for Nadex contracts and to calculate theExpiration Value on the Expiration Date for the relevant Natural Gas contracts will
be February 17, 2012, rather than February 24, 2012, and the Start Date for the next
delivery month, Nymex Natural Gas April 2012 futures will be February 18, 2012.
(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the Natural Gas Binary
Contract, the Payout Criteria for the Contracts will be set as follows:
(i)

(ii)

WEEKLY NATURAL GAS BINARY CONTRACTS(1)

EXPIRATION TIME – 2:30PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.10.

(3)

NUMBER OF STRIKE LEVELS LISTED – Thirteen (13) strike levels
will be listed for each Weekly Natural Gas Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “W” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.250 or 0.750 as reported by the Source Agency. Six (6)strike levels will be generated above Binary Contract W at aninterval of 0.20, and six (6) strike levels will be generated below
Binary Contract W at an interval of 0.20 (e.g. W – 0.20; W; W + 0.20).
The Contract will have a Payout Criterion of greater than the strikelevel value.

DAILY NATURAL GAS BINARY CONTRACTS(1)

EXPIRATION TIME – 2:30PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.04.

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134

(iii)

(iv)

(f)

(3)

NUMBER OF STRIKE LEVELS LISTED – Fifteen (15) strike levels will
be listed for each Daily Natural Gas Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 0.1
as reported by the Source Agency. Seven (7) strike levels will be
generated above Binary Contract Y at an interval of 0.06, and seven(7) strike levels will be generated below Binary Contract Y at aninterval of 0.06 (e.g. Y – 0.06; Y; Y + 0.06). The Contract will have a
Payout Criterion of greater than the strike level value.

INTRADAY NATURAL GAS BINARY CONTRACTS(1)

EXPIRATION TIME – 10:00AM, 11:00AM, 12:00PM, 1:00PM,
2:00PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.005.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday Natural Gas Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 0.01
as reported by the Source Agency. Four (4) strike levels will be
generated above Binary Contract Z at an interval of 0.01, and four(4) strike levels will be generated below Binary Contract Z at aninterval of 0.01 (e.g. Z – 0.01; Z; Z + 0.01). The Contract will have a
Payout Criterion of greater than the strike level value.

Nadex may list additional Natural Gas Binary Contract with different ranges
of Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

MINIMUM TICK – The Minimum Tick size for Natural Gas Binary Contracts shallbe $0.25.

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(g)

POSITION LIMIT – The Position Limits for Natural Gas Binary Contracts shall be
2,500 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
Natural Gas Binary Contracts for contracted Market Makers shall be 5,000
Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Expiration Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the same date as the Expiration
Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Natural Gas Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney Natural Gas Binary Contract is $100.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of Natural Gas
released by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all NFC trade prices occurring in the ten(10) seconds leading up to the close of trading of the Natural Gas Binary Contract,provided at least twenty-five (25) trade prices are captured during the ten (10)second period, removing the highest twenty (20) percent of NFC trade prices andthe lowest twenty (20) percent of NFC trade prices in the data set33, and using theremaining NFC trade prices in the data set, to calculate the Expiration Value. The
calculation used is a simple average of all the remaining NFC trade prices in thedata set, rounded to one decimal point past the precision of the underlying market.
In the event the time it takes to collect at least twenty-five (25) NFC trade prices
exceeds the ten (10) seconds just prior to the close of trading of the Natural Gas
Binary Contract, the Expiration Value is calculated by the Source Agency by taking
the last twenty-five (25) NFC trade prices just prior to the close of trading of the
Natural Gas Binary Contract removing the highest five (5) NFC trade prices and thelowest five (5) NFC trade prices, and using the remaining fifteen (15) NFC trade
prices to calculate the Expiration Value. The calculation used is a simple averageof all fifteen (15) NFC trade prices, rounded to one decimal point past the precisionof the underlying market.

33 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

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(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
– 12.23 [RESERVED]BITCOIN CRYPTOCURRENCYCONTRACTS“TOUCH

BRACKET”

VARIABLE

PAYOUT(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the
Bitcoin Cryptocurrency (“Bitcoin”) Touch Bracket Variable Payout Contracts,
referred to as a ‘Touch Bracket”, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot bitcoin
cryptocurrency commodity bid/ask midpoint prices as reported by Lukka, Inc. andICE® Cryptocurrency Data34 aggregated by Blockstream® Corporation35 anddistributed by ICE Data® Connectivity and Feeds, Inc.36, herein referred to as “UBIT”, quoted in US dollars.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the Bitcoin Touch
Brackets, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY BITCOIN TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Expiration is the earlier of (a) 4:15PM ET on the Last Trade Day of thecontract listing, or (b) when the Bitcoin Index Value is equal to or greaterthan the Ceiling, or equal to or less than the Floor. Nadex shall list a set offour (4) Touch Bracket Variable Payout Contracts, each referred to as a
‘Touch Bracket’, that open at 11:00PM ET on the first Trade Day of the

34 ICE® is a registered mark of IntercontinentalExchange, Inc. (“ICE”). Nadex is not affiliated with ICE or ICE Data

Connectivity and Feeds, Inc., and the Bitcoin Cryptocurrency “Touch Bracket” Variable Payout Contracts are notsponsored, endorsed, sold or promoted by ICE or ICE Data Connectivity and Feeds, Inc. in any way.
35 Blockstream® is a registered mark of Blockstream Corporation (“Blockstream”). Nadex is not affiliated with
Blockstream and the Bitcoin Cryptocurrency “Touch Bracket” Variable Payout Contracts are not sponsored, endorsed,
sold or promoted by Blockstream.
36 ICE® is a registered mark of IntercontinentalExchange, Inc. (“ICE”) and ICE Data® is a registered mark ofIntercontinental Exchange Holdings, Inc (“ICE Holdings”). Nadex is not affiliated with ICE, ICE Holdings, or ICE Data
Connectivity and Feeds, Inc., and the Bitcoin Cryptocurrency “Touch Bracket” Variable Payout Contracts are notsponsored, endorsed, sold or promoted by ICE, Ice Holdings, or ICE Data Connectivity and Feeds, Inc. in any way.

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137week, with overlapping ranges, which conform to the Payout Criteria listed
below.

(ii)(1)

CONTRACT 1: The Ceiling shall be X + 400; The Floor shall be X –
100.

(2)

CONTRACT 2: The Ceiling shall be X + 300; The Floor shall be X –
200.

(3)

CONTRACT 3: The Ceiling shall be X + 200; The Floor shall be X –
300.

(4)

CONTRACT 4: The Ceiling shall be X + 100; The Floor shall be X –
400.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1.

(6)

In each case, “X” equals the last U-BIT value, as reported by the
Source Agency, rounded to the nearest 1.

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 400 (or 100) and a Floor of X – 100 (or 400)
where X equals the Ceiling (or Floor) of the Touch Bracket that expired
early. The newly listed Touch Bracket will have the same Last Trade Day as
originally established for the expired Touch Bracket and the same Dollar
Multiplier as the expired Touch Bracket.

(f)

MINIMUM TICK –The Minimum Tick size for the Bitcoin Touch Bracket Variable
Payout Contracts shall be 1.

(g)

POSITION LIMIT –The Position Limit for the Bitcoin Touch Bracket Variable Payout
Contracts shall be 250 Contracts.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
Bitcoin Touch Bracket Variable Payout Contracts for contracted Market Makers
shall be 250,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

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(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the Bitcoin Touch Bracket Expiration Value is released by the Source
Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

BITCOIN INDEX VALUE – The Source Agency shall calculate and produce a Bitcoin
Index Value once each second throughout the life of the Bitcoin Touch Bracket
Contracts. That is, each second the Source Agency will calculate a Bitcoin Index
Value by taking by taking U-BIT midpoints between the bid/ask spread occurringin the sixty (60) seconds leading up to the Calculation Time, provided at least
twenty-five (25) midpoints between the bid/ask spread are captured during thesixty (60) second period, removing the highest twenty (20) percent of U-BIT trade
prices and the lowest twenty (20) percent of U-BIT midpoints between the bid/ask
spread from the data set37, and using the remaining U-BIT midpoints between thebid/ask spread to calculate the Bitcoin Index Value for that second. The
calculation used is a simple average of the remaining U-BIT midpoints between
the bid/ask spread in the data set, rounded to one decimal point past the precisionof the Underlying market. In the event the time it takes to collect at least twentyfive (25) U-BIT midpoints between the bid/ask spread exceeds the sixty (60)second period, the Bitcoin Index Value will be calculated by the Source Agency bytaking the last twenty-five (25) U-BIT midpoints between the bid/ask spread justprior to the Calculation Time, removing the highest five (5) U-BIT midpoints
between the bid/ask spread and the lowest five (5) U-BIT midpoints between thebid/ask spread, and using the remaining fifteen (15) U-BIT midpoints between thebid/ask spread to calculate the Bitcoin Index Value. The calculation used is a
simple average of all fifteen (15) U-BIT midpoints between the bid/ask spread,rounded to one decimal point past the precision of the Underlying market.

(n)

EXPIRATION VALUE – The Expiration Value is the Bitcoin Index Value released by
the Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source

37 If 20% of the data set would result in a non-integer number of midpoints between the bid/ask spread, the number of

midpoints between the bid/ask spread to be removed from the set will be rounded down. For example, if the numberof midpoints between the bid/ask spread collected during the last 60 seconds prior to the close of trading was 31, 20%of the data set would be 6.2 midpoints between the bid/ask spread As 6.2 is a non-integer number, the value will be
rounded down, and the 6 highest and 6 lowest midpoints between the bid/ask spread will be removed from the data
set.

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139Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
ETHER CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE PAYOUT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the Ether
Cryptocurrency (“Ether”) Touch Bracket Variable Payout Contracts, referred to asa ‘Touch Bracket”, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot Ether
cryptocurrency commodity bid/ask midpoint prices reported by Lukka, Inc. andICE® Cryptocurrency Data38, aggregated by Blockstream® Corporation39 anddistributed by ICE Data® Connectivity and Feeds, Inc.40, herein referred to as “UETH”, quoted in US dollars.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the Ether Touch
Brackets, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY ETHER TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Expiration is the earlier of (a) 4:15PM ET on the Last Trade Day of theContract listing, or (b) when the Ether Index Value is equal to or greaterthan the Ceiling, or equal to or less than the Floor. Nadex shall list a set offour (4) Touch Bracket Variable Payout Contracts, each referred to as a
‘Touch Bracket’, that open at 11:00 PM ET on the first Trade Day of theweek, with overlapping ranges, which conform to the Payout Criteria listed
below.
(1)

CONTRACT 1: The Ceiling shall be X + 80; The Floor shall be X - 20.

38 ICE® is a registered mark of IntercontinentalExchange, Inc. (“ICE”). Nadex is not affiliated with ICE or ICE Data

Connectivity and Feeds, Inc., and the Ether Cryptocurrency “Touch Bracket” Variable Payout Contracts are notsponsored, endorsed, sold or promoted by ICE or ICE Data Connectivity and Feeds, Inc. in any way.
39 Blockstream® is a registered mark of Blockstream Corporation (“Blockstream”). Nadex is not affiliated with
Blockstream and the Ether Cryptocurrency “Touch Bracket” Variable Payout Contracts are not sponsored, endorsed,
sold or promoted by Blockstream.
40 ICE® is a registered mark of IntercontinentalExchange, Inc. (“ICE”) and ICE Data® is a registered mark ofIntercontinental Exchange Holdings, Inc (“ICE Holdings”). Nadex is not affiliated with ICE, ICE Holdings, or ICE Data
Connectivity and Feeds, Inc., and the Ether Cryptocurrency “Touch Bracket” Variable Payout Contracts are notsponsored, endorsed, sold or promoted by ICE, ICE Holdings, or ICE Data Connectivity and Feeds, Inc. in any way.

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(ii)

(2)

CONTRACT 2: The Ceiling shall be X + 60; The Floor shall be X – 40.

(3)

CONTRACT 3: The Ceiling shall be X + 40; The Floor shall be X - 60.

(4)

CONTRACT 4: The Ceiling shall be X + 20; The Floor shall be X – 80.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 2.50.

(6)

In each case, “X” equals the last U-ETH value, as reported by the
Source Agency, rounded to the nearest 1.

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 80 (or 20) and a Floor of X – 20 (or 80) where
X equals the Ceiling (or Floor) of the Touch Bracket that expired early. The
newly listed Touch Bracket will have the same Last Trade Day as originallyestablished for the expired Touch Bracket and the same Dollar Multiplieras the expired Touch Bracket.

(f)

MINIMUM TICK –The Minimum Tick size for the Ether Touch Bracket Variable
Payout Contracts shall be 1.

(g)

POSITION LIMIT –The Position Limit for the Ether Touch Bracket Variable Payout
Contracts shall be 250 Contracts.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the Ether
Touch Bracket Variable Payout Contracts for contracted Market Makers shall be
250,000 Contracts per strike level(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the Ether Touch Bracket Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

ETHER INDEX VALUE – The Source Agency shall calculate and produce a Ether
Index Value once each second throughout the life of the Ether Touch Bracket
Contracts. That is, each second the Source Agency will calculate a Ether Index
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141Value by taking by taking all U-ETH midpoints between the bid/ask spreadoccurring in the sixty (60) seconds leading up to the Calculation Time, provided atleast twenty-five (25) midpoints between the bid/ask spread are captured during
the sixty (60) second period, removing the highest twenty (20) percent of U-ETH
midpoints between the bid/ask spread and the lowest twenty (20) percent of UETH midpoints between the bid/ask spread from the data set 41, and using theremaining U-ETH midpoints between the bid/ask spread to calculate the Ether
Index Value for that second. The calculation used is a simple average of theremaining U-ETH midpoints between the bid/ask spread in the data set, rounded
to one decimal point past the precision of the Underlying market. In the event thetime it takes to collect at least twenty-five (25) U-ETH midpoints between thebid/ask spread exceeds the sixty (60) second period, the Ether Index Value will becalculated by the Source Agency by taking the last twenty-five (25) U-ETH
midpoints between the bid/ask spread just prior to the Calculation Time, removing
the highest five (5) U-ETH midpoints between the bid/ask spread and the lowest
five (5) U-ETH midpoints between the bid/ask spread, and using the remaining
fifteen (15) U-ETH midpoints between the bid/ask spread to calculate the Ether
Index Value. The calculation used is a simple average of all fifteen (15) U-ETH
midpoints between the bid/ask spread, rounded to one decimal point past the
precision of the Underlying market.
(n)

EXPIRATION VALUE – The Expiration Value is the Ether Index Value released by
the Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE AUD/USD VARIABLE PAYOUT CONTRACTS

RULE 12.26.1 CURRENCY EXCHANGE AUD/USD “CALL SPREAD” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange AUD/USD (“AUD/USD”) Call Spread Variable Payout Contracts,
referred to as a “Call Spread”, issued by Nadex.

41 If 20% of the data set would result in a non-integer number of midpoints between the bid/ask spread, the number of

midpoints between the bid/ask spread to be removed from the set will be rounded down. For example, if the numberof midpoints between the bid/ask spread collected during the last 60 seconds prior to the close of trading was 31, 20%of the data set would be 6.2 midpoints between the bid/ask spread. As 6.2 is a non-integer number, the value will be
rounded down, and the 6 highest and 6 lowest midpoints between the bid/ask spread will be removed from the data
set.

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(b)

UNDERLYING – The Underlying for this Class of Contracts is the Australian
dollar/US dollar, herein referred to as “AUD/USD” as quoted in US dollars per
Australian dollar obtained from the spot AUD/USD foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the AUD/USD Call
Spread Variable Payout Contract, the Payout Criteria for the Contracts will be set
as follows;(i)

WEEKLY AUD/USD CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly AUD/USD
Call Spread, Nadex shall list one (1) Call Spread Contract, which conforms
to the Payout Criteria listed below:
(1)

(2)

(ii)

WEEKLY AUD/USD CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 0.0375.

B.

FLOOR – The Floor shall be X – 0.0375.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be
10,000.

In each case, “X” equals the last AUD/USD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

WEEKLY AUD/USD CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly AUD/USD
Call Spread, Nadex shall list five (5) Call Spread Contracts with overlapping
ranges, which conforms to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X – 0.0125; The Floor shall be X
– 0.0375.

(2)

CONTRACT 2: The Ceiling shall be X; The Floor shall be X – 0.0250.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0125; The Floor shall be X
– 0.0125.

(4)

CONTRACT 4: The Ceiling shall be X + 0.0250; The Floor shall be X.
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(iii)(5)

CONTRACT 5: The Ceiling shall be X + 0.0375; The Floor shall be X
– 0.0125.

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(7)

In each case, “X” equals the last AUD/USD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

DAILY AUD/USD CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00 PM
ET CLOSE - At the commencement of trading in a Daily AUD/USD Call
Spread Variable Payout Contract, referred to as a ‘Call Spread’, Nadex shalllist one (1) Call Spread Contract, which conforms to one of the Payout
Criteria listed below:
(1)

(2)

(iv)

(v)

DAILY AUD/USD CALL SPREAD CONTRACT:A.

CEILING – The Ceiling shall be X + 0.0250.

B.

FLOOR – The Floor shall be X – 0.0250.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be
10,000.

In each case, “X” equals the last AUD/USD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

DAILY AUD/USD CALL SPREAD CONTRACTS, 3:00 PM ET CLOSE - Nadex
shall list a set of three (3) Call Spread Contracts with overlapping ranges,
which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 0.0250.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0125; The Floor shall be X
– 0.0125.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0250; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(5)In each case, “X” equals the last AUD/USD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

INTRADAY AUD/USD CALL SPREAD CONTRACTS, 6:00PM to 11:00PM,
11:00PM to 7:00AM, and 7:00AM to 3:00PM ET CLOSE - Nadex shall list a

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144set of three (3) Call Spread Contracts with overlapping ranges, which
conform to the Payout Criteria listed below:

(vi)

(vii)

(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X- 0.0200.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0100; The Floor shall be X
– 0.0100(3)

CONTRACT 3: The Ceiling shall be X + 0.0200; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(5)In each case, “X” equals the last AUD/USD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

INTRADAY 2-HOUR AUD/USD CALL SPREAD CONTRACTS, 8:00PM,
9:00PM, 10:00PM, 11:00PM, 12:00AM, 1:00AM, 2:00AM, 3:00AM, 4:00AM,
5:00AM, 6:00AM, 7:00AM, 8:00AM, 9:00AM, 10:00AM, 11:00AM, 12:00PM,
1:00PM, 2:00PM, and 3:00PM ET CLOSE - Nadex shall list a set of three (3)Call Spread Contracts that open 2 hours prior to the stated closing time(s)above with overlapping ranges, which conform to the Payout Criteria listed
below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X- 0.0100.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0050; The Floor shall be X
– 0.0050(3)

CONTRACT 3: The Ceiling shall be X + 0.0100; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(5)In each case, “X” equals the last AUD/USD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for AUD/USD Call Spread Contracts shallbe 0.0001.

(g)

POSITION LIMIT – The Position Limits for AUD/USD Call Spread Contracts shallbe 250 Contracts per Class.
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(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
AUD/USD Call Spread Variable Payout Contracts for contracted Market Makers
shall be 500 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the AUD/USD Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of AUD/USD Index
Value released by the Source Agency at Expiration on the Expiration Date. The
Expiration Value is calculated by the Source Agency by taking all Midpoints
between the bid/ask spread (ten pips wide or less) occurring in the ten (10)seconds leading up to the close of trading of the AUD/USD Call Spread Contract,provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty(30) percent of Midpoints from the data set42, using the remaining AUD/USD
Midpoints to calculate the Expiration Value. The calculation used is a simple
average of the remaining AUD/USD Midpoints, rounded to one decimal point past
the precision of the underlying market. In the event the time it takes to collect atleast ten (10) Midpoints (ten pips wide or less) exceeds the ten (10) second time
period, the Expiration Value is calculated by the Source Agency by taking the lastten (10) Midpoints between the bid/ask spread (ten pips wide or less) just prior tothe close of trading of the AUD/USD Call Spread Contract and removing thehighest three (3) Midpoints and the lowest three (3) Midpoints, using the remaining
four (4) AUD/USD Midpoints to calculate the Expiration Value. The calculation
used is a simple average of all four (4) AUD/USD Midpoints, rounded to one
decimal point past the precision of the underlying market.

42 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.

RULE 12.26.2 CURRENCY EXCHANGE AUD/USD “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange AUD/USD (“AUD/USD”) Touch Bracket Variable Payout
Contracts, referred to as a ‘Touch Bracket”, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Australian
dollar/US dollar, herein referred to as “AUD/USD” as quoted in US dollars per
Australian dollar obtained from the spot AUD/USD foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the AUD/USD
Touch Bracket Contracts, the Payout Criteria for the Contracts will be set as
follows:(i)

WEEKLY AUD/USD TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Expiration is the earlier of (a) 3:00PM ET on the Last Trade Day of thecontract listing, or (b) when the AUD/USD Index Value is equal to or greaterthan the Ceiling, or equal to or less than the Floor. Nadex shall list a set offour (4) Touch Bracket Variable Payout Contracts, each referred to as a
‘Touch Bracket’, that open at 6:00PM ET on the first Trade Day of the week,with overlapping ranges, which conform to the Payout Criteria listed below.
(1)

CONTRACT 1: The Ceiling shall be X + 0.0080; The Floor shall be X0.0020.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0060; The Floor shall be X
– 0.0040.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0040; The Floor shall be X0.0060.

(4)

CONTRACT 4: The Ceiling shall be X + 0.0020; The Floor shall be X
– 0.0080.
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(ii)

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(6)

In each case, “X” equals the last AUD/USD price, as reported by the
Source Agency, rounded to the nearest 0.0001.

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 0.0080 (or 0.0020) and a Floor of X – 0.0020(or 0.0080) where X equals the Ceiling (or Floor) of the Touch Bracket that
expired early. The newly listed Touch Bracket will have the same Last Trade
Day as originally established for the expired Touch Bracket and the same
Dollar Multiplier as the expired Touch Bracket.

(f)

MINIMUM TICK – The Minimum Tick size for the AUD/USD Touch Bracket Variable
Payout Contracts shall be 0.0001.

(g)

POSITION LIMIT – The Position Limit for AUD/USD Touch Bracket Variable Payout
Contracts shall be 100 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
AUD/USD Touch Bracket Variable Payout Contracts for contracted Market Makers
shall be 100,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the AUD/USD Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

AUD/USD INDEX VALUE – The Source Agency shall calculate and produce a
AUD/USD Index Value once each second throughout the life of the AUD/USD
Variable Payout contracts. That is, each second the Source Agency will calculatea AUD/USD Index Value by taking all Midpoints between the bid/ask spread (tenpips wide or less) occurring in the ten (10) seconds leading up to the Calculation
Time, provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty

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(30) percent of Midpoints from the data set43, using the remaining AUD/USD
Midpoints to calculate the AUD/USD Index Value for that second. The calculation
used is a simple average of the remaining AUD/USD Midpoints, rounded to one
decimal point past the precision of the underlying market. In the event the time ittakes to collect at least ten (10) Midpoints (ten pips wide or less) exceeds the ten(10) second time period, the AUD/USD Index Value is calculated by the Source
Agency by taking the last ten (10) Midpoints between the bid/ask spread (ten pips
wide or less) just prior to the Calculation Time and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)AUD/USD Midpoints to calculate the AUD/USD Index Value. The calculation used
is a simple average of all four (4) AUD/USD Midpoints, rounded to one decimal
point past the precision of the underlying market.
(n)

EXPIRATION VALUE – The Expiration Value is the AUD/USD Index Value releasedby the Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE AUD/USD BINARY CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange AUD/USD (“AUD/USD”) Binary Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Australian
dollar/US dollar herein referred to as “AUD/USD” as quoted in U.S. dollars per
Australian dollar obtained from the spot AUD/USD foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the AUD/USD Binary
Contract, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY AUD/USD BINARY CONTRACTS

43 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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(ii)

(iii)

(1)

EXPIRATION TIME – 3 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0050.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fourteen (14) strike levels
will be listed for each Weekly AUD/USD Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “W” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.0025 or 0.0075 as reported by the Source Agency. Six (6)strike levels will be generated above Binary Contract W at aninterval of 0.0050, and seven (7) strike levels will be generated
below Binary Contract W at an interval of 0.0050 (e.g. W – 0.0050;
W; W + 0.0050). The Contract will have a Payout Criterion of greaterthan the strike level value.

DAILY AUD/USD BINARY CONTRACTS(1)

EXPIRATION TIME – 3 AM, 7 AM, 11 AM, 3 PM, 7 PM, 11 PM ET
CLOSE

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.002.

(3)

NUMBER OF STRIKE LEVELS LISTED – Thirteen (13) strike levels
will be listed for each Daily AUD/USD Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in
0.0020 as reported by the Source Agency. Ten (10) strike levels will
be generated above Binary Contract X at an interval of 0.0012, andten (10) strike levels will be generated below Binary Contract X at
an interval of 0.0012 (e.g. X – 0.0012; X; X + 0.0012). The Contract
will have a Payout Criterion of greater than the strike level value.

INTRADAY 2-HOUR AUD/USD BINARY CONTRACTS
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(iv)

(1)

EXPIRATION TIME – 8 PM, 9 PM, 10 PM, 11 PM, 12 AM, 1 AM, 2
AM, 3 AM, 4 AM, 5 AM, 6 AM, 7 AM, 8 AM, 9 AM, 10 AM, 11 AM, 12
PM, 1 PM , 2 PM, 3 PM, 4 PM, 5 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0004.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday 2-Hour AUD/USD Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.0000, 0.0002, 0.0004, 0.0006, or 0.0008 as reported by the
Source Agency. Nine (9) strike levels will be generated above Binary
Contract Y at an interval of 0.0004, and nine (9) strike levels will be
generated below Binary Contract Y at an interval of 0.0004 (e.g. Y –0.0004; Y; Y + 0.0004). The Contract will have a Payout Criterion ofgreater than the strike level value.

INTRADAY 5-MINUTE AUD/USD BINARY CONTRACTS(1)

EXPIRATION TIME – 5-Minute Binary Contracts will expire every 5
minutes beginning Sunday at 6:05pm ET and ending Friday at
4:00pm ET.

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0002.

(3)

NUMBER OF STRIKE LEVELS LISTED – Five (5) strike levels will belisted for each Intraday 5-Minute AUD/USD Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.0001, 0.0003, 0.0005, 0.0007, or 0.0009 as reported by the
Source Agency. For expirations occurring between 6:05pm ET and
8:05am ET and between 12:10pm ET and 5:00pm ET, two (2) strikelevels will be generated above Binary Contract Z at an interval of
0.0002, and two (2) strike levels will be generated below Binary151

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Contract Z at an interval of 0.0002 (e.g. Z – 0.0002; Z; Z + 0.0002).
The Contract will have a Payout Criterion of greater than the strikelevel value. For expirations occurring between 8:10am ET and
12:05pm ET, two (2) strike levels will be generated above Binary
Contract Z at an interval of 0.0004, and two (2) strike levels will be
generated below Binary Contract Z at an interval of 0.0004 (e.g. Z –0.0004; Z; Z + 0.0004). The Contract will have a Payout Criterion ofgreater than the strike level value.
(5)

(v)

Nadex may, in its discretion, temporarily refrain from the listing of
any 5-Minute Binary Contract due to the unavailability of theunderlying market upon which the Contract is based, or any othercondition Nadex determines may be detrimental to the listing of theContract.

Nadex may list additional AUD/USD Binary Contracts with different ranges
of Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for AUD/USD Binary Contracts shall be$0.25.

(g)

POSITION LIMIT – The Position Limits for AUD/USD Binary Contracts shall be
2,500 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
AUD/USD Binary Contracts for contracted Market Makers shall be 5,000 Contracts
per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same as the
Expiration Date. No trading in the AUD/USD Binary Contracts shall occur after its
Last Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date on which the AUD/USD
number as reported by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the AUD/USD number is scheduled to be released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on the Settlement Date. The Settlement Value of an in
the money AUD/USD Binary Contract is $100.

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(m)

EXPIRATION VALUE – The Expiration Value is the price or value of AUD/USD
released by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all Midpoints between the bid/ask
spread (ten pips wide or less) occurring in the ten (10) seconds leading up to theclose of trading of the AUD/USD Binary Contract, provided at least ten (10)Midpoints are captured during the ten (10) second period, removing the highest
thirty (30) percent of Midpoints and the lowest thirty (30) percent of Midpoints
from the data set44, using the remaining AUD/USD Midpoints to calculate theExpiration Value. The calculation used is a simple average of the remaining
AUD/USD Midpoints, rounded to one decimal point past the precision of theunderlying market. In the event the time it takes to collect at least ten (10)Midpoints (ten pips wide or less) exceeds the ten (10) second time period, theExpiration Value is calculated by the Source Agency by taking the last ten (10)Midpoints between the bid/ask spread (ten pips wide or less) just prior to the closeof trading of the AUD/USD Binary Contract and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)AUD/USD Midpoints to calculate the Expiration Value. The calculation used is a
simple average of all four (4) AUD/USD Midpoints, rounded to one decimal point
past the precision of the underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE EUR/USD VARIABLE PAYOUT CONTRACTS

RULE 12.28.1 CURRENCY EXCHANGE EUR/USD “CALL SPREAD” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange EUR/USD (“EUR/USD”) Call Spread Variable Payout Contracts,
referred to as a “Call Spread”, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Euro/US dollar,
herein referred to as “EUR/USD” as quoted in US dollars per Euro obtained fromthe spot EUR/USD foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

44 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the EUR/USD Call
Spreads, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY EUR/USD CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly EUR/USD
Call Spread, Nadex shall list one (1) Call Spread Contract, which conforms
to the Payout Criteria listed below:
(1)

(2)

(ii)

WEEKLY EUR/USD CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 0.0375.

B.

FLOOR – The Floor shall be X – 0.0375.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be
10,000.

In each case, “X” equals the last EUR/USD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

WEEKLY EUR/USD CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly EUR/USD
Call Spread, Nadex shall list five (5) Call Spread Contracts with overlapping
ranges, which conforms to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X – 0.0125; The Floor shall be X
– 0.0375.

(2)

CONTRACT 2: The Ceiling shall be X; The Floor shall be X – 0.0250.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0125; The Floor shall be X
– 0.0125.

(4)

CONTRACT 4: The Ceiling shall be X + 0.0250; The Floor shall be X.

(5)

CONTRACT 5: The Ceiling shall be X + 0.0375; The Floor shall be X
– 0.0125.

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(7)

In each case, “X” equals the last EUR/USD price, as reported by the
Source Agency, rounded to the nearest 0.0010.
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154

(iii)

EUR/USD CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00 PM ET
CLOSE - At the commencement of trading in a Daily EUR/USD Call Spread,Nadex shall list one (1) Call Spread Contract, which conforms to one of the
Payout Criteria listed below:
(1)

(2)

(iv)

(v)

317083742.2

DAILY EUR/USD CALL SPREAD CONTRACT:A.

CEILING – The Ceiling shall be X + 0.0250.

B.

FLOOR – The Floor shall be X – 0.0250.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be
10,000.

In each case, “X” equals the last EUR/USD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

DAILY EUR/USD CALL SPREAD CONTRACTS, 3:00 PM ET CLOSE - Nadex
shall list a set of three (3) Call Spread Contracts with overlapping ranges,
which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 0.0250.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0125; The Floor shall be X
– 0.0125.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0250; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(5)In each case, “X” equals the last EUR/USD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

INTRADAY EUR/USD CALL SPREAD CONTRACTS, 6:00PM to 11:00PM,
11:00PM to 7:00AM, and 7:00AM to 3:00PM ET CLOSE - Nadex shall list a
set of three (3) Call Spread Contracts with overlapping ranges, which
conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X- 0.0250.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0125; The Floor shall be X
– 0.0125(3)

CONTRACT 3: The Ceiling shall be X + 0.0250; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.
155
155

(5)

(vi)

(vii)

In each case, “X” equals the last EUR/USD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

INTRADAY 2-HOUR EUR/USD CALL SPREAD CONTRACTS, 8:00PM,
9:00PM, 10:00PM, 11:00PM, 12:00AM, 1:00AM, 2:00AM, 3:00AM, 4:00AM,
5:00AM, 6:00AM, 7:00AM, 8:00AM, 9:00AM, 10:00AM, 11:00AM, 12:00PM,
1:00PM, 2:00PM, and 3:00PM ET CLOSE - Nadex shall list a set of three (3)Call Spread Contracts that open 2 hours prior to the stated closing time(s)above with overlapping ranges, which conform to the Payout Criteria listed
below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X- 0.0100.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0050; The Floor shall be X
– 0.0050(3)

CONTRACT 3: The Ceiling shall be X + 0.0100; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(5)In each case, “X” equals the last EUR/USD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for EUR/USD Call Spread Variable
Payout Contracts shall be 0.0001.

(g)

POSITION LIMIT – The Position Limits for EUR/USD Call Spread Contracts shall be
250 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
EUR/USD Call Spread Variable Payout Contracts for contracted Market Makers
shall be 500 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the EUR/USD Expiration Value is released by the Source Agency.
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156

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of EUR/USD Index
Value released by the Source Agency at Expiration on the Expiration Date. The
Expiration Value is calculated by the Source Agency by taking all Midpoints
between the bid/ask spread (ten pips wide or less) occurring in the ten (10)seconds leading up to the close of trading of the EUR/USD Call Spread Contract,provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty(30) percent of Midpoints from the data set45, using the remaining EUR/USD
Midpoints to calculate the Expiration Value. The calculation used is a simple
average of the remaining EUR/USD Midpoints, rounded to one decimal point past
the precision of the underlying market. In the event the time it takes to collect atleast ten (10) Midpoints (ten pips wide or less) exceeds the ten (10) second time
period, the Expiration Value is calculated by the Source Agency by taking the lastten (10) Midpoints between the bid/ask spread (ten pips wide or less) just prior tothe close of trading of the EUR/USD Call Spread Contract and removing the highest
three (3) Midpoints and the lowest three (3) Midpoints, using the remaining four(4) EUR/USD Midpoints to calculate the Expiration Value. The calculation used isa simple average of all four (4) EUR/USD Midpoints, rounded to one decimal point
past the precision of the underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.

RULE 12.28.2 CURRENCY EXCHANGE EUR/USD “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange EUR/USD (“EUR/USD”) Touch Bracket Variable Payout
Contracts, referred to as a ‘Touch Bracket”, issued by Nadex.

45 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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(b)

UNDERLYING – The Underlying for this Class of Contracts is the Euro/US dollar,
herein referred to as “EUR/USD” as quoted in US dollars per Euro obtained fromthe spot EUR/USD foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the EUR/USD
Touch Bracket Contracts, the Payout Criteria for the Contracts will be set as
follows:(i)

WEEKLY EUR/USD TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Expiration is the earlier of (a) 3:00PM ET on the Last Trade Day of thecontract listing, or (b) when the EUR/USD Index Value is equal to or greaterthan the Ceiling, or equal to or less than the Floor. Nadex shall list a set offour (4) Touch Bracket Variable Payout Contracts, each referred to as a
‘Touch Bracket’, that open at 6:00PM ET on the first Trade Day of the week,with overlapping ranges, which conform to the Payout Criteria listed below.
(1)

CONTRACT 1: The Ceiling shall be X + 0.0080; The Floor shall be X0.0020.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0060; The Floor shall be X
– 0.0040.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0040; The Floor shall be X0.0060.

(4)

CONTRACT 4: The Ceiling shall be X + 0.0020; The Floor shall be X
– 0.0080.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(ii)

In each case, “X” equals the last EUR/USD price, as reported by the Source
Agency, rounded to the nearest 0.0001.

(iii)

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 0.0080 (or 0.0020) and a Floor of X – 0.0020(or 0.0080) where X equals the Ceiling (or Floor) of the Touch Bracket that
expired early. The newly listed Touch Bracket will have the same Last Trade
Day as originally established for the expired Touch Bracket and the same
Dollar Multiplier as the expired Touch Bracket.
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158

(f)

MINIMUM TICK – The Minimum Tick size for the EUR/USD Touch Bracket Variable
Payout Contracts shall be 0.0001.

(g)

POSITION LIMIT – The Position Limit for EUR/USD Touch Bracket Variable Payout
Contracts shall be 100 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
EUR/USD Touch Bracket Variable Payout Contracts for contracted Market Makers
shall be 100,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the EUR/USD Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EUR/USD INDEX VALUE – The Source Agency shall calculate and produce a
EUR/USD Index Value once each second throughout the life of the EUR/USD
Variable Payout contracts. That is, each second the Source Agency will calculatea EUR/USD Index Value by taking all Midpoints between the bid/ask spread (tenpips wide or less) occurring in the ten (10) seconds leading up to the Calculation
Time, provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty(30) percent of Midpoints from the data set46, using the remaining EUR/USD
Midpoints to calculate the EUR/USD Index Value for that second. The calculation
used is a simple average of the remaining EUR/USD Midpoints, rounded to one
decimal point past the precision of the underlying market. In the event the time ittakes to collect at least ten (10) Midpoints (ten pips wide or less) exceeds the ten(10) second time period, the EUR/USD Index Value is calculated by the Source
Agency by taking the last ten (10) Midpoints between the bid/ask spread (ten pips
wide or less) just prior to the Calculation Time and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)46 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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159

EUR/USD Midpoints to calculate the EUR/USD Index Value. The calculation used
is a simple average of all four (4) EUR/USD Midpoints, rounded to one decimal
point past the precision of the underlying market.
(n)

EXPIRATION VALUE – The Expiration Value is the EUR/USD Index Value releasedby the Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE EUR/USD BINARY CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange EUR/USD (“EUR/USD”) Binary Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Euro/US dollar
herein referred to as “EUR/USD” as quoted in U.S. dollars per Euro obtained fromthe spot EUR/USD foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the EUR/USD Binary
Contract, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY EUR/USD BINARY CONTRACTS(1)

EXPIRATION TIME – 3 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0050.

(3)

NUMBER OF STRIKE LEVELS LISTED - Fourteen (14) strike levels
will be listed for each Weekly EUR/USD Binary Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Binary Contract “W” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in
0.0025 or 0.0075 as reported by the Source Agency. Six (6) strike160

317083742.2

160levels will be generated above Binary Contract W at an interval of
0.0050, and seven (7) strike levels will be generated below Binary
Contract W at an interval of 0.0050 (e.g. W – 0.0050; W; W +0.0050). The Contract will have a Payout Criterion of greater than
the strike level value.
(ii)

(iii)

DAILY EUR/USD BINARY CONTRACTS(1)

EXPIRATION TIME – 3 AM, 7 AM, 11 AM, 3 PM, 7 PM, 11 PM ET
CLOSE

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.002.

(3)

NUMBER OF STRIKE LEVELS LISTED – Thirteen (13) strike levels
will be listed for each Daily EUR/USD Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in
0.0020 as reported by the Source Agency. Ten (10) strike levels will
be generated above Binary Contract X at an interval of 0.0012, andten (10) strike levels will be generated below Binary Contract X at
an interval of 0.0012 (e.g. X – 0.0012; X; X + 0.0012). The Contract
will have a Payout Criterion of greater than the strike level value.

INTRADAY 2-HOUR EUR/USD BINARY CONTRACTS(1)

EXPIRATION TIME – 8 PM, 9 PM, 10 PM, 11 PM, 12 AM, 1 AM, 2
AM, 3 AM, 4 AM, 5 AM, 6 AM, 7 AM, 8 AM, 9 AM, 10 AM, 11 AM, 12
PM, 1 PM, 2 PM, 3 PM, 4 PM, 5 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0004.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday 2-Hour EUR/USD Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall be
161317083742.2

161

measured in U.S. cents rounded to the nearest value ending ineither 0.0000, 0.0002, 0.0004, 0.0006, or 0.0008 as reported by the
Source Agency. Nine (9) strike levels will be generated above Binary
Contract Y at an interval of 0.0004, and nine (9) strike levels will be
generated below Binary Contract Y at an interval of 0.0004 (e.g. Y –0.0004; Y; Y + 0.0004). The Contract will have a Payout Criterion ofgreater than the strike level value.
(iv)

317083742.2

INTRADAY 5-MINUTE EUR/USD BINARY CONTRACTS(1)

EXPIRATION TIME – 5-Minute Binary Contracts will expire every 5
minutes beginning Sunday at 6:05pm ET and ending Friday at
4:00pm ET.

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0002.

(3)

NUMBER OF STRIKE LEVELS LISTED – Five (5) strike levels will belisted for each Intraday 5-Minute EUR/USD Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.0001, 0.0003, 0.0005, 0.0007, or 0.0009 as reported by the
Source Agency. For expirations occurring between 6:05pm ET and
8:05am ET and between 12:10pm ET and 5:00pm ET, two (2) strikelevels will be generated above Binary Contract Z at an interval of
0.0002, and two (2) strike levels will be generated below Binary
Contract Z at an interval of 0.0002 (e.g. Z – 0.0002; Z; Z + 0.0002).
The Contract will have a Payout Criterion of greater than the strikelevel value. For expirations occurring between 8:10am ET and
12:05pm ET, two (2) strike levels will be generated above Binary
Contract Z at an interval of 0.0004, and two (2) strike levels will be
generated below Binary Contract Z at an interval of 0.0004 (e.g. Z –0.0004; Z; Z + 0.0004). The Contract will have a Payout Criterion ofgreater than the strike level value.

(5)

Nadex may, in its discretion, temporarily refrain from the listing of
any 5-Minute Binary Contract due to the unavailability of theunderlying market upon which the Contract is based, or any othercondition Nadex determines may be detrimental to the listing of theContract.
162
162

(v)

Nadex may list additional EUR/USD Binary Contracts with different ranges
of Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for EUR/USD Binary Contracts shall be$0.25.

(g)

POSITION LIMIT – The Position Limits for EUR/USD Binary Contracts shall be
2,500 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
EUR/USD Binary Contracts for contracted Market Makers shall be 5,000 Contracts
per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same as the
Expiration Date. No trading in the EUR/USD Binary Contracts shall occur after its
Last Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date on which the EUR/USD
number as reported by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the EUR/USD number is scheduled to be released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on the Settlement Date. The Settlement Value of an in
the money EUR/USD Binary Contract is $100.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of EUR/USD
released by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all Midpoints between the bid/ask
spread (ten pips wide or less) occurring in the ten (10) seconds leading up to theclose of trading of the EUR/USD Binary Contract, provided at least ten (10)Midpoints are captured during the ten (10) second period, removing the highest
thirty (30) percent of Midpoints and the lowest thirty (30) percent of Midpoints
from the data set47, using the remaining EUR/USD Midpoints to calculate theExpiration Value. The calculation used is a simple average of the remaining
EUR/USD Midpoints, rounded to one decimal point past the precision of theunderlying market. In the event the time it takes to collect at least ten (10)Midpoints (ten pips wide or less) exceeds the ten (10) second time period, the47 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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Expiration Value is calculated by the Source Agency by taking the last ten (10)Midpoints between the bid/ask spread (ten pips wide or less) just prior to the closeof trading of the EUR/USD Binary Contract and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)EUR/USD Midpoints to calculate the Expiration Value. The calculation used is a
simple average of all four (4) EUR/USD Midpoints, rounded to one decimal point
past the precision of the underlying market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE GBP/USD VARIABLE PAYOUT CONTRACTS

RULE 12.30.1 CURRENCY EXCHANGE GBP/USD “CALL SPREAD” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE –These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange GBP/USD (“GBP/USD”) Call Spread Variable Payout Contracts,
referred to as a ‘Call Spread’, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the British Pound/ US
dollar, herein referred to as “GBP/USD” as quoted in US dollars per British Poundobtained from the spot GBP/USD foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the GBP/USD Call
Spreads, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY GBP/USD CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly GBP/USD
Call Spread, Nadex shall list one (1) Call Spread Contract, which conforms
to the Payout Criteria listed below:(1)

WEEKLY GBP/USD CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 0.0375.

B.

FLOOR – The Floor shall be X – 0.0375.
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C.

(2)

(ii)

(iii)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be
10,000.

In each case, “X” equals the last GBP/USD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

WEEKLY GBP/USD CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly GBP/USD
Call Spread, Nadex shall list five (5) Call Spread Contracts with overlapping
ranges, which conforms to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X – 0.0125; The Floor shall be X
– 0.0375.

(2)

CONTRACT 2: The Ceiling shall be X; The Floor shall be X – 0.0250.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0125; The Floor shall be X
– 0.0125.

(4)

CONTRACT 4: The Ceiling shall be X + 0.0250; The Floor shall be X.

(5)

CONTRACT 5: The Ceiling shall be X + 0.0375; The Floor shall be X
– 0.0125.

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(7)

In each case, “X” equals the last GBP/USD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

DAILY GBP/USD CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00 PM
ET CLOSE SPREAD - At the commencement of trading in a Daily USD/USD
Call Spread, Nadex shall list one (1) Call Spread Contract, which conforms
to one of the Payout Criteria listed below:
(1)

(2)

DAILY GBP/USD CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 0.0250.

B.

FLOOR – The Floor shall be X – 0.0250.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be
10,000.

In each case, “X” equals the last GBP/USD price, as reported by the
Source Agency, rounded to the nearest 0.0010.
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(iv)

(v)

(vi)

DAILY GBP/USD CALL SPREAD CONTRACTS, 3:00 PM ET CLOSE - Nadex
shall list a set of three (3) Call Spread Contracts with overlapping ranges,
which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 0.0250.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0125; The Floor shall be X
– 0.0125.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0250; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(5)In each case, “X” equals the last GBP/USD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

INTRADAY GBP/USD CALL SPREAD CONTRACTS, 6:00PM to 11:00PM,
11:00PM to 7:00AM, and 7:00AM to 3:00PM ET CLOSE - Nadex shall list a
set of three (3) Call Spread Contracts with overlapping ranges, which
conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X- 0.0300.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0150; The Floor shall be X
– 0.0150(3)

CONTRACT 3: The Ceiling shall be X + 0.0300; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(5)In each case, “X” equals the last GBP/USD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

INTRADAY 2-HOUR GBP/USD CALL SPREAD CONTRACTS, 8:00PM,
9:00PM, 10:00PM, 11:00PM, 12:00AM, 1:00AM, 2:00AM, 3:00AM, 4:00AM,
5:00AM, 6:00AM, 7:00AM, 8:00AM, 9:00AM, 10:00AM, 11:00AM, 12:00PM,
1:00PM, 2:00PM, and 3:00PM ET CLOSE - Nadex shall list a set of three (3)Call Spread Contracts that open 2 hours prior to the stated closing time(s)above with overlapping ranges, which conform to the Payout Criteria listed
below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X- 0.0150.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0075; The Floor shall be X
– 0.0075.
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(vii)(3)

CONTRACT 3: The Ceiling shall be X + 0.0150; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(5)In each case, “X” equals the last GBP/USD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for GBP/USD Call Spread Variable
Payout Contracts shall be 0.0001.

(g)

POSITION LIMIT – The Position Limits for GBP/USD Call Spread Contracts shallbe 250 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
GBP/USD Call Spread Variable Payout Contracts for contracted Market Makers
shall be 500 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series shall be the same dateas the Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the GBP/USD Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of GBP/USD Index
Value released by the Source Agency at Expiration on the Expiration Date. The
Expiration Value is calculated by the Source Agency by taking all Midpoints
between the bid/ask spread (ten pips wide or less) occurring in the ten (10)seconds leading up to the close of trading of the GBP/USD Call Spread Contract,provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty

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(30) percent of Midpoints from the data set48, using the remaining GBP/USD
Midpoints to calculate the Expiration Value. The calculation used is a simple
average of the remaining GBP/USD Midpoints, rounded to one decimal point past
the precision of the underlying market. In the event the time it takes to collect atleast ten (10) Midpoints (ten pips wide or less) exceeds the ten (10) second time
period, the Expiration Value is calculated by the Source Agency by taking the lastten (10) Midpoints between the bid/ask spread (ten pips wide or less) just prior tothe close of trading of the GBP/USD Call Spread Contract and removing the highest
three (3) Midpoints and the lowest three (3) Midpoints, using the remaining four(4) GBP/USD Midpoints to calculate the Expiration Value. The calculation used isa simple average of all four (4) GBP/USD Midpoints, rounded to one decimal point
past the precision of the underlying market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.

RULE 12.30.2 CURRENCY EXCHANGE GBP/USD “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange GBP/USD (“GBP/USD”) Touch Bracket Variable Payout
Contracts, referred to as a ‘Touch Bracket”, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the British Pound/ US
dollar, herein referred to as “GBP/USD” as quoted in US dollars per British Poundobtained from the spot GBP/USD foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the GBP/USD
Touch Bracket Contracts, the Payout Criteria for the Contracts will be set as
follows:(i)

WEEKLY GBP/USD TOUCH BRACKET Variable Payout CONTRACTS,
Expiration is the earlier of 3:00PM ET on the Last Trade Day of the contract

48 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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168listing, or when the GBP/USD Index Value is equal to or greater than the
Ceiling, or equal to or less than the Floor. Nadex shall list a set of four (4)Touch Bracket Variable Payout Contracts, referred to as a ‘Touch Bracket’,that open at 6:00PM ET on the first Trade Day of the week, with overlapping
ranges, which conform to the Payout Criteria listed below.

(ii)

(1)

CONTRACT 1: The Ceiling shall be X + 0.0080; The Floor shall be X0.0020.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0060; The Floor shall be X
– 0.0040.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0040; The Floor shall be X
– 0.0060.

(4)

CONTRACT 4: The Ceiling shall be X + 0.0020; The Floor shall be X
– 0.0080.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(6)

In each case, “X” equals the last GBP/USD price, as reported by the
Source Agency, rounded to the nearest 0.0001.

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 0.0080 (or 0.0020) and a Floor of X – 0.0020(or 0.0080) where X equals the Ceiling (or Floor) of the Touch Bracket that
expired early. The newly listed Touch Bracket will have the same Last Trade
Day as originally established for the expired Touch Bracket and the same
Dollar Multiplier as the expired Touch Bracket.

(f)

MINIMUM TICK – The Minimum Tick size for GBP/USD Touch Bracket Variable
Payout Contracts shall be 0.0001.

(g)

POSITION LIMIT – The Position Limit for GBP/USD Touch Bracket Variable Payout
Contracts shall be 100 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
GBP/USD Touch Bracket Variable Payout Contracts for contracted Market Makers
shall be 100,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.
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(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the GBP/USD Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

GBP/USD INDEX VALUE – The Source Agency shall calculate and produce a
GBP/USD Index Value once each second throughout the life of the GBP/USD
Variable Payout contracts. That is, each second the Source Agency will calculatea GBP/USD Index Value by taking all Midpoints between the bid/ask spread (tenpips wide or less) occurring in the ten (10) seconds leading up to the Calculation
Time, provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty(30) percent of Midpoints from the data set49, using the remaining GBP/USD
Midpoints to calculate the GBP/USD Index Value for that second. The calculation
used is a simple average of the remaining GBP/USD Midpoints, rounded to one
decimal point past the precision of the underlying market. In the event the time ittakes to collect at least ten (10) Midpoints (ten pips wide or less) exceeds the ten(10) second time period, the GBP/USD Index Value is calculated by the Source
Agency by taking the last ten (10) Midpoints between the bid/ask spread (ten pips
wide or less) just prior to the Calculation Time and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)GBP/USD Midpoints to calculate the GBP/USD Index Value. The calculation used
is a simple average of all four (4) GBP/USD Midpoints, rounded to one decimal
point past the precision of the underlying market.

(n)

EXPIRATION VALUE – The Expiration Value is the GBP/USD Index Value releasedby the Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE GBP/USD BINARY CONTRACTS

49 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange GBP/USD (“GBP/USD”) Binary Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the British Pound/US
dollar herein referred to as “GBP/USD” as quoted in US dollars per British Poundobtained from the spot GBP/USD foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the GBP/USD Binary
Contract, the Payout Criteria for the Contracts will be set as follows:
(i)

(ii)

WEEKLY GBP/USD BINARY CONTRACTS(1)

EXPIRATION TIME – 3 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0050.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fourteen (14) strike levels
will be listed for each Weekly GBP/USD Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “W” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in
0.0025 or 0.0075 as reported by the Source Agency. Six (6) strikelevels will be generated above Binary Contract W at an interval of
0.0050, and seven (7) strike levels will be generated below Binary
Contract W at an interval of 0.0050 (e.g. W – 0.0050; W; W +0.0050). The Contract will have a Payout Criterion of greater than
the strike level value.

DAILY GBP/USD BINARY CONTRACTS(1)

EXPIRATION TIME – 3 AM, 7 AM, 11 AM, 3 PM, 7 PM, 11 PM ET
CLOSE

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.004.
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(iii)(iv)(3)

NUMBER OF STRIKE LEVELS LISTED – Thirteen (13) strike levels
will be listed for each Daily GBP/USD Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in
0.0020 as reported by the Source Agency. Ten (10) strike levels will
be generated above Binary Contract X at an interval of 0.0020, andten (10) strike levels will be generated below Binary Contract X at
an interval of 0.0020 (e.g. X – 0.0020; X; X + 0.0020). The Contract
will have a Payout Criterion of greater than the strike level value.

INTRADAY 2-HOUR GBP/USD BINARY CONTRACTS(1)

EXPIRATION TIME – 8 PM, 9 PM, 10 PM, 11 PM, 12 AM, 1 AM, 2
AM, 3 AM, 4 AM, 5 AM, 6 AM, 7 AM, 8 AM, 9 AM, 10 AM, 11 AM, 12
PM, 1 PM , 2 PM, 3 PM, 4 PM, 5 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0008.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday 2-Hour GBP/USD Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.0000, 0.0002, 0.0004, 0.0006, or 0.0008 as reported by the
Source Agency. Four (4) strike levels will be generated above Binary
Contract Y at an interval of 0.0010, and four (4) strike levels will be
generated below Binary Contract Y at an interval of 0.0010 (e.g. Y –0.0010; Y; Y + 0.0010). The Contract will have a Payout Criterion ofgreater than the strike level value.

INTRADAY 5-MINUTE GBP/USD BINARY CONTRACTS(1)

EXPIRATION TIME – 5-Minute Binary Contracts will expire every 5
Minutes beginning Sunday at 6:05pm ET and ending Friday at
4:00pm ET.
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172

(v)

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0002.

(3)

NUMBER OF STRIKE LEVELS LISTED – Five (5) strike levels will belisted for each Intraday 5-Minute GBP/USD Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.0001, 0.0003, 0.0005, 0.0007, or 0.0009 as reported by the
Source Agency. For expirations occurring between 6:05pm ET and
8:05am ET and between 12:10pm ET and 5:00pm ET, two (2) strikelevels will be generated above Binary Contract Z at an interval of
0.0002, and two (2) strike levels will be generated below Binary
Contract Z at an interval of 0.0002 (e.g. Z – 0.0002; Z; Z + 0.0002).
The Contract will have a Payout Criterion of greater than the strikelevel value. For expirations occurring between 8:10am ET and
12:05pm ET, two (2) strike levels will be generated above Binary
Contract Z at an interval of 0.0004, and two (2) strike levels will be
generated below Binary Contract Z at an interval of 0.0004 (e.g. Z –0.0004; Z; Z + 0.0004). The Contract will have a Payout Criterion ofgreater than the strike level value.

(5)

Nadex may, in its discretion, temporarily refrain from the listing of
any 5-Minute Binary Contract due to the unavailability of theunderlying market upon which the Contract is based, or any othercondition Nadex determines may be detrimental to the listing of theContract.

Nadex may list additional GBP/USD Binary Contract with different ranges
of Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for GBP/USD Binary Contracts shall be$0.25.

(g)

POSITION LIMIT – The Position Limits for GBP/USD Binary Contracts shall be
2,500 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
GBP/USD Binary Contracts for contracted Market Makers shall be 5,000 Contracts
per strike level.
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(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Expiration Date. No trading in the GBP/USD Binary Contracts shall occur after its
Last Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date the GBP/USD number
is scheduled to be released.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the GBP/USD number is scheduled to be released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on the Settlement Date. The Settlement Value of an in
the money GBP/USD Binary Contract is $100.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of GBP/USD
released by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all Midpoints between the bid/ask
spread (ten pips wide or less) occurring in the ten (10) seconds leading up to theclose of trading of the GBP/USD Binary Contract, provided at least ten (10)Midpoints are captured during the ten (10) second period, removing the highest
thirty (30) percent of Midpoints and the lowest thirty (30) percent of Midpoints
from the data set50, using the remaining GBP/USD Midpoints to calculate theExpiration Value. The calculation used is a simple average of the remaining
GBP/USD Midpoints, rounded to one decimal point past the precision of theunderlying market. In the event the time it takes to collect at least ten (10)Midpoints (ten pips wide or less) exceeds the ten (10) second time period, theExpiration Value is calculated by the Source Agency by taking the last ten (10)Midpoints between the bid/ask spread (ten pips wide or less) just prior to the closeof trading of the GBP/USD Binary Contract and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)GBP/USD Midpoints to calculate the Expiration Value. The calculation used is a
simple average of all four (4) GBP/USD Midpoints, rounded to one decimal point
past the precision of the underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.

50 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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CURRENCY EXCHANGE USD/CAD VARIABLE PAYOUT CONTRACTS
RULE 12.32.1 CURRENCY EXCHANGE USD/CAD “CALL SPREAD” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange USD/CAD (“USD/CAD”) Call Spread Variable Payout Contracts,
referred to as a “Call Spread”, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the US the US Dollar/
Canadian Dollar, herein referred to as “USD/CAD” as quoted in US dollars per
Canadian Dollar obtained from the spot USD/CAD foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the USD/CAD Call
Spread Variable Payout Contract, the Payout Criteria for the Contracts will be set
as follows;(i)

WEEKLY USD/CAD CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly USD/CAD
Call Spread, Nadex shall list one (1) Call Spread Contract, which conforms
to the Payout Criteria listed below:
(1)

(2)

(ii)

WEEKLY USD/CAD CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 0.0375.

B.

FLOOR – The Floor shall be X – 0.0375.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be
10,000.

In each case, “X” equals the last USD/CAD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

WEEKLY USD/CAD CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly USD/CAD
Call Spread, Nadex shall list five (5) Call Spread Contracts with overlapping
ranges, which conforms to the Payout Criteria listed below:

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(iii)(1)

CONTRACT 1: The Ceiling shall be X – 0.0125; The Floor shall be X
– 0.0375.

(2)

CONTRACT 2: The Ceiling shall be X; The Floor shall be X – 0.0250.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0125; The Floor shall be X
– 0.0125.

(4)

CONTRACT 4: The Ceiling shall be X + 0.0250; The Floor shall be X.

(5)

CONTRACT 5: The Ceiling shall be X + 0.0375; The Floor shall be X
– 0.0125.

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(7)

In each case, “X” equals the last USD/CAD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

DAILY USD/CA CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00 PM
ET CLOSE SPREAD – At the commencement of trading in a Daily USD/CAD
Call Spread Variable Payout Contract, referred to as a ‘Call Spread’, Nadex
shall list one (1) Call Spread Contract, which conforms to the Payout
Criteria listed below:
(1)

(2)

(iv)

317083742.2

DAILY USD/CAD CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 0.0250.

B.

FLOOR – The Floor shall be X – 0.0250.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be
10,000.

In each case, “X” equals the last USD/CAD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

DAILY USD/CAD CALL SPREAD CONTRACTS, 3:00 PM ET CLOSE – Nadex
shall list a set of three (3) Call Spread Contracts with overlapping ranges,
which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 0.0250.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0125; The Floor shall be X
– 0.0125.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0250; The Floor shall be X.
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(v)

(vi)

(vii)

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(5)In each case, “X” equals the last USD/CAD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

INTRADAY USD/CAD CALL SPREAD CONTRACTS, 6:00PM to 11:00PM,
11:00PM to 7:00AM, 7:00AM to 3:00PM ET CLOSE - Nadex shall list a setof three (3) Call Spread Contracts with overlapping ranges, which conformto the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X- 0.0200.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0100; The Floor shall be X
– 0.0100(3)

CONTRACT 3: The Ceiling shall be X + 0.0200; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(5)In each case, “X” equals the last USD/CAD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

INTRADAY 2-HOUR USD/CAD CALL SPREAD CONTRACTS, 8:00PM,
9:00PM, 10:00PM, 11:00PM, 12:00AM, 1:00AM, 2:00AM, 3:00AM, 4:00AM,
5:00AM, 6:00AM, 7:00AM, 8:00AM, 9:00AM, 10:00AM, 11:00AM, 12:00PM,
1:00PM, 2:00PM, and 3:00PM ET CLOSE – Nadex shall list a set of three(3) Call Spread Contracts that open 2 hours prior to the stated closingtime(s) above with overlapping ranges, which conform to the Payout
Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 0.0100.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0050; The Floor shall be X
– 0.0050(3)

CONTRACT 3: The Ceiling shall be X + 0.0100; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(5)In each case, “X” equals the last USD/CAD price, as reported by the
Source Agency, rounded to the nearest 0.0010.

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.
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(f)

MINIMUM TICK – The Minimum Tick size for USD/CAD Call Spread Contracts shallbe 0.0001.

(g)

POSITION LIMIT – The Position Limits for USD/CAD Call Spread Contracts shallbe 250 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
USD/CAD Call Spread Variable Payout Contracts for contracted Market Makers
shall be 500 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the USD/CAD Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of USD/CAD Index
Value released by the Source Agency at Expiration on the Expiration Date. The
Expiration Value is calculated by the Source Agency by taking all Midpoints
between the bid/ask spread (ten pips wide or less) occurring in the ten (10)seconds leading up to the close of trading of the USD/CAD Call Spread Contract,provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty(30) percent of Midpoints from the data set51, using the remaining USD/CAD
Midpoints to calculate the Expiration Value. The calculation used is a simple
average of the remaining USD/CAD Midpoints, rounded to one decimal point past
the precision of the underlying market. In the event the time it takes to collect atleast ten (10) Midpoints (ten pips wide or less) exceeds the ten (10) second time
period, the Expiration Value is calculated by the Source Agency by taking the lastten (10) Midpoints between the bid/ask spread (ten pips wide or less) just prior tothe close of trading of the USD/CAD Call Spread Contract and removing thehighest three (3) Midpoints and the lowest three (3) Midpoints, using the remaining

51 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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178four (4) USD/CAD Midpoints to calculate the Expiration Value. The calculation
used is a simple average of all four (4) USD/CAD Midpoints, rounded to one
decimal point past the precision of the underlying market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.

RULE 12.32.2 CURRENCY EXCHANGE USD/CAD “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange USD/CAD (“USD/CAD”) Touch Bracket Variable Payout
Contracts, referred to as a ‘Touch Bracket”, issued by Nadex.

(b)

UNDERLYING – Underlying for this Class of Contracts is the US the US Dollar/
Canadian Dollar, herein referred to as “USD/CAD” as quoted in US dollars per
Canadian Dollar obtained from the spot USD/CAD foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the USD/CAD
Touch Bracket Contracts, the Payout Criteria for the Contracts will be set as
follows:(i)

317083742.2

WEEKLY USD/CAD TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Expiration is the earlier of (a) 3:00PM ET on the Last Trade Day of thecontract listing, or (b) when the USD/CAD Index Value is equal to or greaterthan the Ceiling, or equal to or less than the Floor. Nadex shall list a set offour (4) Touch Bracket Variable Payout Contracts, each referred to as a
‘Touch Bracket’, that open at 6:00PM ET on the first Trade Day of the week,with overlapping ranges, which conform to the Payout Criteria listed below.
(1)

CONTRACT 1: The Ceiling shall be X + 0.0080; The Floor shall be X
– 0.0020.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0060; The Floor shall be X
– 0.0040.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0040; The Floor shall be X
– 0.0060.
179
179

(ii)

(4)

CONTRACT 4: The Ceiling shall be X + 0.0020; The Floor shall be X
– 0.0080.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(6)

In each case, “X” equals the last USD/CAD price, as reported by the
Source Agency, rounded to the nearest 0.0001.

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 0.0080 (or 0.0020) and a Floor of X – 0.0020(or 0.0080) where X equals the Ceiling (or Floor) of the Touch Bracket that
expired early. The newly listed Touch Bracket will have the same Last Trade
Day as originally established for the expired Touch Bracket and the same
Dollar Multiplier as the expired Touch Bracket.

(f)

MINIMUM TICK –The Minimum Tick size for the USD/CAD Touch Bracket Variable
Payout Contracts shall be 0.0001.

(g)

POSITION LIMIT –The Position Limit for USD/CAD Touch Bracket Variable Payout
Contracts shall be 100 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
USD/CAD Touch Bracket Variable Payout Contracts for contracted Market Makers
shall be 100,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the USD/CAD Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

USD/CAD INDEX VALUE – The Source Agency shall calculate and produce a
USD/CAD Index Value once each second throughout the life of the USD/CAD
Variable Payout contracts. That is, each second the Source Agency will calculatea USD/CAD Index Value by taking all Midpoints between the bid/ask spread (tenpips wide or less) occurring in the ten (10) seconds leading up to the Calculation
Time, provided at least ten (10) Midpoints are captured during the ten (10) second
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period, removing the highest thirty (30) percent of Midpoints and the lowest thirty(30) percent of Midpoints from the data set52, using the remaining USD/CAD
Midpoints to calculate the USD/CAD Index Value for that second. The calculation
used is a simple average of the remaining USD/CAD Midpoints, rounded to one
decimal point past the precision of the underlying market. In the event the time ittakes to collect at least ten (10) Midpoints (ten pips wide or less) exceeds the ten(10) second time period, the USD/CAD Index Value is calculated by the Source
Agency by taking the last ten (10) Midpoints between the bid/ask spread (ten pips
wide or less) just prior to the Calculation Time and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)USD/CAD Midpoints to calculate the USD/CAD Index Value. The calculation used
is a simple average of all four (4) USD/CAD Midpoints, rounded to one decimal
point past the precision of the underlying market.
(n)

EXPIRATION VALUE – The Expiration Value is the USD/CAD Index Value releasedby the Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE USD/CAD BINARY CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange USD/CAD (“USD/CAD”) Binary Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the US Dollar/
Canadian Dollar herein referred to as “USD/CAD” as quoted in Canadian Dollars
per US dollars obtained from the spot USD/CAD foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the USD/CAD Binary
Contract, the Payout Criteria for the Contracts will be set as follows:

52 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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(i)

(ii)

WEEKLY USD/CAD BINARY CONTRACTS(1)

EXPIRATION TIME – 3 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0050.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fourteen (14) strike levels
will be listed for each Weekly USD/CAD Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “W” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in
0.0025 or 0.0075 as reported by the Source Agency. Six (6) strikelevels will be generated above Binary Contract W at an interval of
0.0050, and seven (7) strike levels will be generated below Binary
Contract W at an interval of 0.0050 (e.g. W – 0.0050; W; W +0.0050). The Contract will have a Payout Criterion of greater than
the strike level value.

DAILY USD/CAD BINARY CONTRACTS(1)

EXPIRATION TIME – 7 AM, 3 PM, 11 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0010.

(3)

NUMBER OF STRIKE LEVELS LISTED – Twenty-one (21) strikelevels will be listed for each Daily USD/CAD Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in
0.000, 0.0020, 0.0040, 0.0060, or 0.0080 as reported by the Source
Agency. Ten (10) strike levels will be generated above Binary
Contract X at an interval of 0.0010, and ten (10) strike levels will be
generated below Binary Contract X at an interval of 0.0010 (e.g. X– 0.0010; X; X + 0.0010). The Contract will have a Payout Criterionof greater than the strike level value.
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(iii)(iv)

INTRADAY USD/CAD BINARY CONTRACTS(1)

EXPIRATION TIME – 10 AM, 11 AM, 12 PM, 1PM, 2 PM, 3 PM ET
CLOSE

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0010.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday USD/CAD Binary Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Binary Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.0002, 0.0004, 0.0007, or 0.0009 as reported by the Source
Agency. Four (4) strike levels will be generated above Binary
Contract Y at an interval of 0.0010, and four (4) strike levels will be
generated below Binary Contract Y at an interval of 0.0010 (e.g. Y –0.0010; Y; Y + 0.0010). The Contract will have a Payout Criterion ofgreater than the strike level value.

INTRADAY 5-MINUTE USD/CAD BINARY CONTRACTS(1)

EXPIRATION TIME – 5-Minute Binary Contracts will expire every 5
minutes beginning Sunday at 6:05pm ET and ending Friday at
4:00pm ET.

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0005.

(3)

NUMBER OF STRIKE LEVELS LISTED – Five (5) strike levels will belisted for each Intraday 5-Minute USD/CAD Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.0001, 0.0006, 0.0003, or 0.0008 as reported by the Source
Agency. Two (2) strike levels will be generated above Binary
Contract Z at an interval of 0.0005, and two (2) strike levels will be
generated below Binary Contract Z at an interval of 0.0005 (e.g. Z –183317083742.2

1830.0005; Z; Z + 0.0005). The Contract will have a Payout Criterion ofgreater than the strike level value.
(5)

(v)

Nadex may, in its discretion, temporarily refrain from the listing of
any 5-Minute Binary Contract due to the unavailability of theunderlying market upon which the Contract is based, or any othercondition Nadex determines may be detrimental to the listing of theContract.

Nadex may list additional USD/CAD Binary Contracts with different ranges
of Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations(f)

MINIMUM TICK – The Minimum Tick size for the USD/CAD Binary Contracts shallbe $0.25.

(g)

POSITION LIMIT – The Position Limits for USD/CAD Binary Contracts shall be
2,500 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
USD/CAD Binary Contracts for contracted Market Makers shall be 5,000 Contracts
per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Expiration Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date on which the USD/CAD
Settlement Price is released by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the USD/CAD Settlement Price is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on the Settlement Date. The Settlement Value for an in
the money USD/CAD Binary Contract is $100.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of USD/CAD
released by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all Midpoints between the bid/ask
spread (ten pips wide or less) occurring in the ten (10) seconds leading up to theclose of trading of the USD/CAD Binary Contract, provided at least ten (10)Midpoints are captured during the ten (10) second period, removing the highest
thirty (30) percent of Midpoints and the lowest thirty (30) percent of Midpoints

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from the data set53, using the remaining USD/CAD Midpoints to calculate theExpiration Value. The calculation used is a simple average of the remaining
USD/CAD Midpoints, rounded to one decimal point past the precision of theunderlying market. In the event the time it takes to collect at least ten (10)Midpoints (ten pips wide or less) exceeds the ten (10) second time period, theExpiration Value is calculated by the Source Agency by taking the last ten (10)Midpoints between the bid/ask spread (ten pips wide or less) just prior to the closeof trading of the USD/CAD Binary Contract and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)USD/CAD Midpoints to calculate the Expiration Value. The calculation used is a
simple average of all four (4) USD/CAD Midpoints, rounded to one decimal point
past the precision of the underlying market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE USD/CHF VARIABLE PAYOUT CONTRACTS

RULE 12.34.1 CURRENCY EXCHANGE USD/CHF “CALL SPREAD” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange USD/CHF (“USD/CHF”) Call Spread Variable Payout Contracts,
referred to as a ‘Call Spread’, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the US dollar/ Swiss
Franc, herein referred to as “USD/CHF” as quoted in the Swiss Franc per US dollars
obtained from the spot USD/CHF foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the USD/CHF Call
Spreads, the Payout Criteria for the Contracts will be set as follows:

53 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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(i)

WEEKLY USD/CHF CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly USD/CHF
Call Spread, Nadex shall list one (1) Call Spread Contract, which conforms
to the Payout Criteria listed below:
(1)

(2)

(ii)

(iii)

WEEKLY USD/CHF CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 0.0375.

B.

FLOOR – The Floor shall be X – 0.0375.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be
10,000.

In each case, “X” equals the last USD/CHF price, as reported by the
Source Agency, rounded to the nearest 0.0010.

WEEKLY USD/CHF CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly USD/CHF
Call Spread, Nadex shall list five (5) Call Spread Contracts with overlapping
ranges, which conforms to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X – 0.0125; The Floor shall be X
– 0.0375.

(2)

CONTRACT 2: The Ceiling shall be X; The Floor shall be X – 0.0250.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0125; The Floor shall be X
– 0.0125.

(4)

CONTRACT 4: The Ceiling shall be X + 0.0250; The Floor shall be X.

(5)

CONTRACT 5: The Ceiling shall be X + 0.0375; The Floor shall be X
– 0.0125.

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(7)

In each case, “X” equals the last USD/CHF price, as reported by the
Source Agency, rounded to the nearest 0.0010.

DAILY USD/CHF CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00 PM
ET CLOSE – At the commencement of trading in a Daily USD/CHF Call
Spread, Nadex shall list one (1) Call Spread Contract, which conforms to
the Payout Criteria listed below:
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(1)

(2)

(iv)

(v)

DAILY USD/CHF CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 0.0250.

B.

FLOOR – The Floor shall be X – 0.0250.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be
10,000.

In each case, “X” equals the last USD/CHF price, as reported by the
Source Agency, rounded to the nearest 0.0010.

DAILY USD/CHF CALL SPREAD CONTRACTS, 3:00 PM ET CLOSE – Nadex
shall list a set of three (3) Call Spread Contracts with overlapping ranges,
which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 0.0250.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0125; The Floor shall be X
– 0.0125.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0250; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(5)In each case, “X” equals the last USD/CHF price, as reported by the
Source Agency, rounded to the nearest 0.0010.

INTRADAY USD/CHF CALL SPREAD CONTRACTS, 6:00PM to 11:00PM,
11:00PM to 7:00AM, 7:00AM to 3:00PM ET CLOSE – Nadex shall list a setof three (3) Call Spread Contracts with overlapping ranges, which conformto the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 0.0200.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0100; The Floor shall be X
– 0.0100(3)

CONTRACT 3: The Ceiling shall be X + 0.0200; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(5)In each case, “X” equals the last USD/CHF price, as reported by the
Source Agency, rounded to the nearest 0.0010.

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(vi)

(vii)

INTRADAY 2-HOUR USD/CHF CALL SPREAD CONTRACTS, 8:00PM,
9:00PM, 10:00PM, 11:00PM, 12:00AM, 1:00AM, 2:00AM, 3:00AM, 4:00AM,
5:00AM, 6:00AM, 7:00AM, 8:00AM, 9:00AM, 10:00AM, 11:00AM, 12:00PM,
1:00PM, 2:00PM, and 3:00PM ET CLOSE – Nadex shall list a set of three(3) Call Spread Contracts that open 2 hours prior to the stated closingtime(s) above with overlapping ranges, which conform to the Payout
Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 0.0100.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0050; The Floor shall be X
– 0.0050(3)

CONTRACT 3: The Ceiling shall be X + 0.0100; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(5)In each case, “X” equals the last USD/CHF price, as reported by the
Source Agency, rounded to the nearest 0.0010.

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for USD/CHF Call Spread Variable
Payout Contracts shall be 0.0001.

(g)

POSITION LIMIT – The Position Limits for USD/CHF Call Spread Contracts shallbe 250 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
USD/CHF Call Spread Variable Payout Contracts for contracted Market Makers
shall be 500 Contracts per strike level. Date.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the USD/CHF Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
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188Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.
(m)

EXPIRATION VALUE – The Expiration Value is the price or value of USD/CHF Index
Value released by the Source Agency at Expiration on the Expiration Date. The
Expiration Value is calculated by the Source Agency by taking all Midpoints
between the bid/ask spread (ten pips wide or less) occurring in the ten (10)seconds leading up to the close of trading of the USD/CHF Call Spread Contract,provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty(30) percent of Midpoints from the data set54, using the remaining USD/CHF
Midpoints to calculate the Expiration Value. The calculation used is a simple
average of the remaining USD/CHF Midpoints, rounded to one decimal point past
the precision of the underlying market. In the event the time it takes to collect atleast ten (10) Midpoints (ten pips wide or less) exceeds the ten (10) second time
period, the Expiration Value is calculated by the Source Agency by taking the lastten (10) Midpoints between the bid/ask spread (ten pips wide or less) just prior tothe close of trading of the USD/CHF Call Spread Contract and removing the highest
three (3) Midpoints and the lowest three (3) Midpoints, using the remaining four(4) USD/CHF Midpoints to calculate the Expiration Value. The calculation used isa simple average of all four (4) USD/CHF Midpoints, rounded to one decimal point
past the precision of the underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.

RULE 12.34.2 CURRENCY EXCHANGE USD/CHF “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange USD/CHF (“USD/CHF”) Touch Bracket Variable Payout
Contracts, referred to as a ‘Touch Bracket”, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the US dollar/ Swiss
Franc, herein referred to as “USD/CHF” as quoted in the Swiss Franc per US dollars
obtained from the spot USD/CHF foreign currency market.

54 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the USD/CHF
Touch Bracket Contracts, the Payout Criteria for the Contracts will be set as
follows:
(i)

(ii)

(f)

WEEKLY USD/CHF TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Close Time is the earlier of 3:00PM ET on the last Trade Day of the contract
listing, or when the USD/CHF Index Value is equal to or greater than the
Ceiling, or equal to or less than the Floor. Nadex shall list a set of four (4)Touch Bracket Variable Payout Contracts, referred to as a ‘Touch Bracket’,that open at 6:00PM ET on the first Trade Day of the week, with overlapping
ranges, which conform to the Payout Criteria listed below.
(1)

CONTRACT 1: The Ceiling shall be X + 0.0080; The Floor shall be X
– 0.0020.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0060; The Floor shall be X
– 0.0040.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0040; The Floor shall be X
– 0.0060.

(4)

CONTRACT 4: The Ceiling shall be X + 0.0020; The Floor shall be X
– 0.0080.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(6)

In each case, “X” equals the last USD/CHF price, as reported by the
Source Agency, rounded to the nearest 0.0001.

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 0.0080 (or 0.0020) and a Floor of X – 0.0020(or 0.0080) where X equals the Ceiling (or Floor) of the Touch Bracket that
expired early. The newly listed Touch Bracket will have the same Last Trade
Day as originally established for the expired Touch Bracket and the same
Dollar Multiplier as the expired Touch Bracket.

MINIMUM TICK –The Minimum Tick size for the USD/CHF Touch Bracket Variable
Payout Contracts shall be 0.0001.

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(g)

POSITION LIMIT – The Position Limit for USD/CHF Touch Bracket Variable Payout
Contracts shall be 100 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
USD/CHF Touch Bracket Variable Payout Contracts for contracted Market Makers
shall be 100,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the USD/CHF Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

USD/CHF INDEX VALUE – The Source Agency shall calculate and produce a
USD/CHF Index Value once each second throughout the life of the USD/CHF
Variable Payout contracts. That is, each second the Source Agency will calculatea USD/CHF Index Value by taking all Midpoints between the bid/ask spread (tenpips wide or less) occurring in the ten (10) seconds leading up to the Calculation
Time, provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty(30) percent of Midpoints from the data set55, using the remaining USD/CHF
Midpoints to calculate the USD/CHF Index Value for that second. The calculation
used is a simple average of the remaining USD/CHF Midpoints, rounded to one
decimal point past the precision of the underlying market. In the event the time ittakes to collect at least ten (10) Midpoints (ten pips wide or less) exceeds the ten(10) second time period, the USD/CHF Index Value is calculated by the Source
Agency by taking the last ten (10) Midpoints between the bid/ask spread (ten pips
wide or less) just prior to the Calculation Time and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)USD/CHF Midpoints to calculate the USD/CHF Index Value. The calculation used

55 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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is a simple average of all four (4) USD/CHF Midpoints, rounded to one decimal
point past the precision of the underlying market.
(n)

EXPIRATION VALUE – The Expiration Value is the USD/CHF Index Value releasedby the Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE USD/CHF BINARY CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange USD/CHF (“USD/CHF”) Binary Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the US dollar/ Swiss
Franc herein referred to as “USD/CHF” as quoted in the Swiss Franc per US dollar
obtained from the spot USD/CHF foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the USD/CHF Binary
Contract, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY USD/CHF BINARY CONTRACTS(1)

EXPIRATION TIME – 3 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0050.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fourteen (14) strike levels
will be listed for each Weekly USD/CHF Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in
0.0025 or 0.0075 as reported by the Source Agency. Six (6) strikelevels will be generated above Binary Contract X at an interval of
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1920.0050, and seven (7) strike levels will be generated below Binary
Contract X at an interval of 0.0050 (e.g. X – 0.0050; X; X + 0.0050).
The Contract will have a Payout Criterion of greater than the strikelevel value.
(ii)

(iii)

DAILY USD/CHF BINARY CONTRACTS(1)

EXPIRATION TIME – 7 AM, 3 PM, 11 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0010.

(3)

NUMBER OF STRIKE LEVELS LISTED – Twenty-one (21) strikelevels will be listed for each Daily USD/CHF Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in
0.0020 as reported by the Source Agency. Ten (10) strike levels will
be generated above Binary Contract Y at an interval of 0.0010, andten (10) strike levels will be generated below Binary Contract Y atan interval of 0.0010 (e.g. Y – 0.0010; Y; Y + 0.0010). The Contract
will have a Payout Criterion of greater than the strike level value.

INTRADAY USD/CHF BINARY CONTRACTS(1)

EXPIRATION TIME – 10 AM, 11 AM, 12 PM, 1 PM, 2 PM, 3 PM ET
CLOSE

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0004.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fifteen (15) strike levels will
be listed for each Intraday USD/CHF Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in
0.0001 as reported by the Source Agency. Seven (7) strike levels
will be generated above Binary Contract Z at an interval of 0.0004,
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193and seven (7) strike levels will be generated below Binary Contract
Z at an interval of 0.0004 (e.g. Z – 0.0004; Z; Z + 0.0004). The
Contract will have a Payout Criterion of greater than the strike levelvalue.
(iv)

Nadex may list additional USD/CHF Binary Contract with different ranges
of Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for USD/CHF Binary Contracts shall be$0.25.

(g)

POSITION LIMIT – The Position Limits for USD/CHF Binary Contracts shall be
2,500 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
USD/CHF Binary Contracts for contracted Market Makers shall be 5,000 Contracts
per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Expiration Date. No trading in the USD/CHF Binary Contracts shall occur after its
Last Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date the USD/CHF number
is released by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the USD/CHF number is scheduled to be released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney USD/CHF Binary Contract is $100.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of USD/CHF
released by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all Midpoints between the bid/ask
spread (ten pips wide or less) occurring in the ten (10) seconds leading up to theclose of trading of the USD/CHF Binary Contract, provided at least ten (10)Midpoints are captured during the ten (10) second period, removing the highest
thirty (30) percent of Midpoints and the lowest thirty (30) percent of Midpoints
from the data set56, using the remaining USD/CHF Midpoints to calculate the56 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior

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194

Expiration Value. The calculation used is a simple average of the remaining
USD/CHF Midpoints, rounded to one decimal point past the precision of theunderlying market. In the event the time it takes to collect at least ten (10)Midpoints (ten pips wide or less) exceeds the ten (10) second time period, theExpiration Value is calculated by the Source Agency by taking the last ten (10)Midpoints between the bid/ask spread (ten pips wide or less) just prior to the closeof trading of the USD/CHF Binary Contract and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)USD/CHF Midpoints to calculate the Expiration Value. The calculation used is a
simple average of all four (4) USD/CHF Midpoints, rounded to one decimal point
past the precision of the underlying market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE USD/JPY VARIABLE PAYOUT CONTRACTS

RULE 12.36.1 CURRENCY EXCHANGE USD/JPY “CALL SPREAD” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange USD/JPY (“USD/JPY”) Call Spread Variable Payout Contracts,
referred to as a ‘Call Spread’, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the US dollar/
Japanese Yen, herein referred to as “USD/JPY” as quoted in the Japanese Yen per
US dollars obtained from the spot USD/JPY foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the USD/JPY Call
Spreads, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY USD/JPY CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly USD/JPY

to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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195

Call Spread, Nadex shall list one (1) Call Spread Contract, which conforms
to the Payout Criteria listed below:
(1)

(2)

(ii)

(iii)

WEEKLY USD/JPY CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 3.75.

B.

FLOOR – The Floor shall be X – 3.75.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

In each case, “X” equals the last USD/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

WEEKLY USD/JPY CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly USD/JPY
Call Spread, Nadex shall list five (5) Call Spread Contracts with overlapping
ranges, which conforms to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X – 1.25; The Floor shall be X –
3.75.

(2)

CONTRACT 2: The Ceiling shall be X; The Floor shall be X – 2.50.

(3)

CONTRACT 3: The Ceiling shall be X + 1.25; The Floor shall be X –
1.25.

(4)

CONTRACT 4: The Ceiling shall be X + 2.50; The Floor shall be X.

(5)

CONTRACT 5: The Ceiling shall be X + 3.75; The Floor shall be X –
1.25.

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(7)

In each case, “X” equals the last USD/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

DAILY USD/JPY CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00 PM
ET CLOSE – At the commencement of trading in a Daily USD/JPY Call
Spread, Nadex shall list one (1) Call Spread Contract, which conforms to
the Payout Criteria listed below:(1)

DAILY USD/JPY CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 2.50.
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196

(2)

(iv)

(v)

(vi)

B.

FLOOR – The Floor shall be X – 2.50.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

In each case, “X” equals the last USD/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

DAILY USD/JPY CALL SPREAD CONTRACTS, 3:00 PM ET CLOSE – Nadex
shall list a set of three (3) Call Spread Contracts with overlapping ranges,
which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 2.50.

(2)CONTRACT 2: The Ceiling shall be X + 1.25; The Floor shall be X –
1.25.

(3)

CONTRACT 3: The Ceiling shall be X + 2.50; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(5)

In each case, “X” equals the last USD/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

INTRADAY USD/JPY CALL SPREAD CONTRACTS, 6:00PM to 11:00PM,
11:00PM to 7:00AM, and 7:00AM to 3:00PM ET CLOSE – Nadex shall list a
set of three (3) Call Spread Contracts with overlapping ranges, which
conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 1.50.

(2)

CONTRACT 2: The Ceiling shall be X + 0.75; The Floor shall be X –
0.75.

(3)

CONTRACT 3: The Ceiling shall be X + 1.50; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(5)

In each case, “X” equals the last USD/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

INTRADAY 2-HOUR USD/JPY CALL SPREAD CONTRACTS, 8:00PM,
9:00PM, 10:00PM, 11:00PM, 12:00AM, 1:00AM, 2:00AM, 3:00AM, 4:00AM,
5:00AM, 6:00AM, 7:00AM, 8:00AM, 9:00AM, 10:00AM, 11:00AM, 12:00PM,
1:00PM, 2:00PM, and 3:00PM ET CLOSE – Nadex shall list a set of three(3) Call Spread Contracts that open 2 hours prior to the stated closing
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time(s) above with overlapping ranges, which conform to the Payout
Criteria listed below:

(vii)

(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 1.00.

(2)

CONTRACT 2: The Ceiling shall be X + 0.50; The Floor shall be X –
0.50.

(3)

CONTRACT 3: The Ceiling shall be X + 1.00; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(5)

In each case, “X” equals the last USD/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for USD/JPY Call Spread Variable
Payout Contracts shall be 0.01.

(g)

POSITION LIMIT – The Position Limits for USD/JPY Call Spread Contracts shall be
250 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
USD/JPY Call Spread Variable Payout Contracts for contracted Market Makers
shall be 500 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the USD/JPY Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value shall be the amount paid to theholder of either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of USD/JPY Index
Value released by the Source Agency at Expiration on the Expiration Date. The
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Expiration Value is calculated by the Source Agency by taking all Midpoints
between the bid/ask spread (ten pips wide or less) occurring in the ten (10)seconds leading up to the close of trading of the USD/JPY Call Spread Contract,provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty(30) percent of Midpoints from the data set57, using the remaining USD/JPY
Midpoints to calculate the Expiration Value. The calculation used is a simple
average of the remaining USD/JPY Midpoints, rounded to one decimal point past
the precision of the underlying market. In the event the time it takes to collect atleast ten (10) Midpoints (ten pips wide or less) exceeds the ten (10) second time
period, the Expiration Value is calculated by the Source Agency by taking the lastten (10) Midpoints between the bid/ask spread (ten pips wide or less) just prior tothe close of trading of the USD/JPY Call Spread Contract and removing the highest
three (3) Midpoints and the lowest three (3) Midpoints, using the remaining four(4) USD/JPY Midpoints to calculate the Expiration Value. The calculation used isa simple average of all four (4) USD/JPY Midpoints, rounded to one decimal point
past the precision of the underlying market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.

RULE 12.36.2 CURRENCY EXCHANGE USD/JPY “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange USD/JPY (“USD/JPY”) Touch Bracket Variable Payout
Contracts, referred to as a ‘Touch Bracket”, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the US dollar/
Japanese Yen, herein referred to as “USD/JPY” as quoted in the Japanese Yen per
US dollars obtained from the spot USD/JPY foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the USD/JPY

57 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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Touch Bracket Contracts, the Payout Criteria for the Contracts will be set as
follows:(i)(ii)

WEEKLY USD/JPY TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Close Time is the earlier of 3:00PM ET on the last Trade Day of the contract
listing, or when the USD/JPY Index Value is equal to or greater than the
Ceiling, or equal to or less than the Floor. Nadex shall list a set of four (4)Touch Bracket Variable Payout Contracts, referred to as a ‘Touch Bracket’,that open at 6:00PM ET on the first Trade Day of the week, with overlapping
ranges, which conform to the Payout Criteria listed below.
(1)

CONTRACT 1: The Ceiling shall be X + 0.60; The Floor shall be X –
0.15.

(2)

CONTRACT 2: The Ceiling shall be X + 0.45; The Floor shall be X –
0.30.

(3)

CONTRACT 3: The Ceiling shall be X + 0.30; The Floor shall be X –
0.45.

(4)

CONTRACT 4: The Ceiling shall be X + 0.15; The Floor shall be X –
0.60.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(6)

In each case, “X” equals the last USD/JPY price, as reported by the
Source Agency, rounded to the nearest 0.01.

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 0.60 (or 0.15) and a Floor of X – 0.15 (or 0.60)
where X equals the Ceiling (or Floor) of the Touch Bracket that expired
early. The newly listed Touch Bracket will have the same Last Trade Day as
originally established for the expired Touch Bracket and the same Dollar
Multiplier as the expired Touch Bracket.

(f)

MINIMUM TICK – The Minimum Tick size for USD/JPY Touch Bracket Variable
Payout Contracts shall be 0.01.

(g)

POSITION LIMIT –The Position Limit for USD/JPY Touch Bracket Variable Payout
Contracts shall be 100 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
USD/JPY Touch Bracket Variable Payout Contracts for contracted Market Makers
shall be 100,000 Contracts per strike level.
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(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the USD/JPY Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value shall be the amount paid to theholder of either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

USD/JPY INDEX VALUE – The Source Agency shall calculate and produce a
USD/JPY Index Value once each second throughout the life of the USD/JPY
Variable Payout contracts. That is, each second the Source Agency will calculatea USD/JPY Index Value by taking all Midpoints between the bid/ask spread (tenpips wide or less) occurring in the ten (10) seconds leading up to the Calculation
Time, provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty(30) percent of Midpoints from the data set58, using the remaining USD/JPY
Midpoints to calculate the USD/JPY Index Value for that second. The calculation
used is a simple average of the remaining USD/JPY Midpoints, rounded to one
decimal point past the precision of the underlying market. In the event the time ittakes to collect at least ten (10) Midpoints (ten pips wide or less) exceeds the ten(10) second time period, the USD/JPY Index Value is calculated by the Source
Agency by taking the last ten (10) Midpoints between the bid/ask spread (ten pips
wide or less) just prior to the Calculation Time and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)USD/JPY Midpoints to calculate the USD/JPY Index Value. The calculation used isa simple average of all four (4) USD/JPY Midpoints, rounded to one decimal point
past the precision of the underlying market.

(n)

EXPIRATION VALUE – The Expiration Value is the USD/JPY Index Value releasedby the Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source

58 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE USD/JPY BINARY CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange USD/JPY (“USD/JPY”) Binary Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the US dollar/
Japanese Yen, herein referred to as “USD/JPY” as quoted in the Japanese Yen per
US dollar obtained from the spot USD/JPY foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the USD/JPY Binary
Contract, the Payout Criteria for the Contracts will be set as follows:
(i)

(ii)

WEEKLY USD/JPY BINARY CONTRACTS(1)

EXPIRATION TIME – 3 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.50.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fourteen (14) strike levels
will be listed for each Weekly USD/JPY Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “W” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 0.25
or 0.75 as reported by the Source Agency. Six (6) strike levels will
be generated above Binary Contract W at an interval of 0.50, andseven (7) strike levels will be generated below Binary Contract W atan interval of 0.50 (e.g. W – 0.50; W; W + 0.50). The Contract will
have a Payout Criterion of greater than the strike level value.

DAILY USD/JPY BINARY CONTRACTS(1)

EXPIRATION TIME – 3 AM, 7 AM, 11 AM, 3 PM, 7 PM, 11 PM ET
CLOSE
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(iii)(iv)(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.4.

(3)

NUMBER OF STRIKE LEVELS LISTED – Thirteen (13) strike levels
will be listed for each Daily USD/JPY Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 0.20
as reported by the Source Agency. Ten (10) strike levels will be
generated above Binary Contract X at an interval of 0.12, and ten(10) strike levels will be generated below Binary Contract X at aninterval of 0.12 (e.g. X – 0.12; X; X + 0.12). The Contract will have a
Payout Criterion of greater than the strike level value.

INTRADAY 2-HOUR USD/JPY BINARY CONTRACTS(1)

EXPIRATION TIME – 8 PM, 9 PM, 10 PM, 11 PM, 12 AM, 1 AM, 2
AM, 3 AM, 4 AM, 5 AM, 6 AM, 7 AM, 8 AM, 9 AM, 10 AM, 11 AM, 12
PM, 1 PM , 2 PM, 3 PM, 4 PM, 5 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.14.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday 2-Hour USD/JPY Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.00, 0.02, 0.04, 0.06, or 0.08 as reported by the Source
Agency. Nine (9) strike levels will be generated above Binary
Contract Y at an interval of 0.04, and nine (9) strike levels will be
generated below Binary Contract Y at an interval of 0.04 (e.g. Y –0.04; Y; Y + 0.04). The Contract will have a Payout Criterion ofgreater than the strike level value.

INTRADAY 5-MINUTE USD/JPY BINARY CONTRACTS

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(v)

(1)

EXPIRATION TIME – 5-Minute Binary Contracts will expire every 5
minutes beginning Sunday at 6:05pm ET and ending Friday at
4:00pm ET.

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.04.

(3)

NUMBER OF STRIKE LEVELS LISTED – Five (5) strike levels will belisted for each Intraday 5-Minute USD/JPY Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.01, 0.03, 0.05, 0.07, or 0.09 as reported by the Source
Agency. For expirations occurring between 6:05pm ET and 8:05am
ET and between 12:10pm ET and 5:00pm ET, two (2) strike levels
will be generated above Binary Contract Z at an interval of 0.02, andtwo (2) strike levels will be generated below Binary Contract Z at aninterval of 0.02 (e.g. Z – 0.02; Z; Z + 0.02). The Contract will have a
Payout Criterion of greater than the strike level value. For
expirations occurring between 8:10am ET and 12:05pm ET, two (2)strike levels will be generated above Binary Contract Z at an intervalof 0.04, and two (2) strike levels will be generated below Binary
Contract Z at an interval of 0.04 (e.g. Z – 0.04; Z; Z + 0.04). The
Contract will have a Payout Criterion of greater than the strike levelvalue.

(5)

Nadex may, in its discretion, temporarily refrain from the listing of
any 5-Minute Binary Contract due to the unavailability of theunderlying market upon which the Contract is based, or any othercondition Nadex determines may be detrimental to the listing of theContract.

Nadex may list additional USD/JPY Binary Contracts with different ranges
of Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for USD/JPY Binary Contracts shall be$0.25.

(g)

POSITION LIMIT – The Position Limits for USD/JPY Binary Contracts shall be
2,500 Contracts per Class.
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(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
USD/JPY Binary Contracts for contracted Market Makers shall be 5,000 Contracts
per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Expiration Date. No trading in the USD/JPY Binary Contracts shall occur after its
Last Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date the USD/JPY number
is released by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the USD/JPY number is scheduled to be released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney USD/JPY Binary Contract is $100.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of USD/JPY
released by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all Midpoints between the bid/ask
spread (ten pips wide or less) occurring in the ten (10) seconds leading up to theclose of trading of the USD/JPY Binary Contract, provided at least ten (10)Midpoints are captured during the ten (10) second period, removing the highest
thirty (30) percent of Midpoints and the lowest thirty (30) percent of Midpoints
from the data set59, using the remaining USD/JPY Midpoints to calculate theExpiration Value. The calculation used is a simple average of the remaining
USD/JPY Midpoints, rounded to one decimal point past the precision of theunderlying market. In the event the time it takes to collect at least ten (10)Midpoints (ten pips wide or less) exceeds the ten (10) second time period, theExpiration Value is calculated by the Source Agency by taking the last ten (10)Midpoints between the bid/ask spread (ten pips wide or less) just prior to the closeof trading of the USD/JPY Binary Contract and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)USD/JPY Midpoints to calculate the Expiration Value. The calculation used is a
simple average of all four (4) USD/JPY Midpoints, rounded to one decimal point
past the precision of the underlying market.

59 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE EUR/JPY VARIABLE PAYOUT CONTRACTS

RULE 12.38.1 CURRENCY EXCHANGE EUR/JPY “CALL SPREAD” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange EUR/JPY (“EUR/JPY”) Call Spread Variable Payout Contracts,
referred to as a “Call Spread”, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Euro/JapaneseYen, herein referred to as “EUR/JPY” as quoted in the Japanese Yen per Euroobtained from the spot EUR/JPY foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the EUR/JPY Call
Spread Variable Payout Contract, the Payout Criteria for the Contracts will be set
as follows:(i)

WEEKLY EUR/JPY CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly EUR/JPY
Call Spread, Nadex shall list one (1) Call Spread Contract, which conforms
to the Payout Criteria listed below:
(1)

(2)

(ii)

WEEKLY EUR/JPY CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 3.75.

B.

FLOOR – The Floor shall be X – 3.75.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

In each case, “X” equals the last EUR/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

WEEKLY EUR/JPY CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly EUR/JPY
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206

Call Spread, Nadex shall list five (5) Call Spread Contracts with overlapping
ranges, which conforms to the Payout Criteria listed below:

(iii)

(1)

CONTRACT 1: The Ceiling shall be X – 1.25; The Floor shall be X –
3.75.

(2)

CONTRACT 2: The Ceiling shall be X; The Floor shall be X – 2.50.

(3)

CONTRACT 3: The Ceiling shall be X + 1.25; The Floor shall be X –
1.25.

(4)

CONTRACT 4: The Ceiling shall be X + 2.50; The Floor shall be X.

(5)

CONTRACT 5: The Ceiling shall be X + 3.75; The Floor shall be X –
1.25.

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(7)

In each case, “X” equals the last EUR/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

DAILY EUR/JPY CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00 PM
ET CLOSE - At the commencement of trading in a Daily EUR/JPY Call
Spread Variable Payout Contract, referred to as a ‘Call Spread’, Nadex shalllist one (1) Call Spread Contract, which conforms to the Payout Criteria
listed below:
(1)

(2)

(iv)

317083742.2

DAILY EUR/JPY CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 2.50.

B.

FLOOR – The Floor shall be X – 2.50.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

In each case, “X” equals the last EUR/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

DAILY EUR/JPY CALL SPREAD CONTRACTS, 3:00 PM ET CLOSE – Nadex
shall list a set of three (3) Call Spread Contracts with overlapping ranges,
which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 2.50.

(2)CONTRACT 2: The Ceiling shall be X + 1.25; The Floor shall be X –
1.25.
207
207

(v)

(vi)

(3)

CONTRACT 3: The Ceiling shall be X + 2.50; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(5)

In each case, “X” equals the last EUR/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

INTRADAY EUR/JPY CALL SPREAD CONTRACTS, 6:00PM to 11:00PM,
11:00PM to 7:00AM, and 7:00AM to 3:00PM ET CLOSE – Nadex shall list a
set of three (3) Call Spread Contracts with overlapping ranges, which
conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 2.00.

(2)CONTRACT 2: The Ceiling shall be X + 1.00; The Floor shall be X –
1.00.

(3)

CONTRACT 3: The Ceiling shall be X + 2.00; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(5)

In each case, “X” equals the last EUR/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

INTRADAY 2-HOUR EUR/JPY CALL SPREAD CONTRACTS, 8:00PM,
9:00PM, 10:00PM, 11:00PM, 12:00AM, 1:00AM, 2:00AM, 3:00AM, 4:00AM,
5:00AM, 6:00AM, 7:00AM, 8:00AM, 9:00AM, 10:00AM, 11:00AM, 12:00PM,
1:00PM, 2:00PM, and 3:00PM ET CLOSE – Nadex shall list a set of three(3) Call Spread Contracts that open 2 hours prior to the stated closingtime(s) above with overlapping ranges, which conform to the Payout
Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 1.00.

(2)

CONTRACT 2: The Ceiling shall be X + 0.50; The Floor shall be X –
0.50.

(3)

CONTRACT 3: The Ceiling shall be X + 1.00; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(5)

In each case, “X” equals the last EUR/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

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(vii)

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for EUR/JPY Call Spread Contracts shallbe 0.01.

(g)

POSITION LIMIT – The Position Limits for EUR/JPY Call Spread Contracts shall be
250 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
EUR/JPY Call Spread Variable Payout Contracts for contracted Market Makers
shall be 500 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the EUR/JPY Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value shall be the amount paid to theholder of either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of EUR/JPY Index
Value released by the Source Agency at Expiration on the Expiration Date. The
Expiration Value is calculated by the Source Agency by taking all Midpoints
between the bid/ask spread (ten pips wide or less) occurring in the ten (10)seconds leading up to the close of trading of the EUR/JPY Call Spread Contract,provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty(30) percent of Midpoints from the data set60, using the remaining EUR/JPY
Midpoints to calculate the Expiration Value. The calculation used is a simple
average of the remaining EUR/JPY Midpoints, rounded to one decimal point past
the precision of the underlying market. In the event the time it takes to collect atleast ten (10) Midpoints (ten pips wide or less) exceeds the ten (10) second time

60 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

209
317083742.2

209period, the Expiration Value is calculated by the Source Agency by taking the lastten (10) Midpoints between the bid/ask spread (ten pips wide or less) just prior tothe close of trading of the EUR/JPY Call Spread Contract and removing the highest
three (3) Midpoints and the lowest three (3) Midpoints, using the remaining four(4) EUR/JPY Midpoints to calculate the Expiration Value. The calculation used is a
simple average of all four (4) EUR/JPY Midpoints, rounded to one decimal point
past the precision of the underlying market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.

RULE 12.38.2 CURRENCY EXCHANGE EUR/JPY “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange EUR/JPY (“EUR/JPY”) Touch Bracket Variable Payout
Contracts, referred to as a ‘Touch Bracket”, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Euro/JapaneseYen, herein referred to as “EUR/JPY” as quoted in the Japanese Yen per Euroobtained from the spot EUR/JPY foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the EUR/JPY
Touch Bracket Contracts, the Payout Criteria for the Contracts will be set as
follows:(i)

WEEKLY EUR/JPY TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Close Time is the earlier of 3:00PM ET on the last Trade Day of the contract
listing, or when the EUR/JPY Index Value is equal to or greater than the
Ceiling, or equal to or less than the Floor. Nadex shall list a set of four (4)Touch Bracket Variable Payout Contracts, referred to as a ‘Touch Bracket’,that open at 6:00PM ET on the first Trade Day of the week, with overlapping
ranges, which conform to the Payout Criteria listed below.
(1)

CONTRACT 1: The Ceiling shall be X + 0.600; The Floor shall be X –0.150.
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(ii)

(2)

CONTRACT 2: The Ceiling shall be X + 0.450; The Floor shall be X –0.300.

(3)

CONTRACT 3: The Ceiling shall be X + 0.300; The Floor shall be X –0.450.

(4)

CONTRACT 4: The Ceiling shall be X + 0.150; The Floor shall be X –0.600.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(6)

In each case, “X” equals the last EUR/JPY price, as reported by the
Source Agency, rounded to the nearest 0.01.

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 0.600 (or 0.150) and a Floor of X – 0.150 (or.600) where X equals the Ceiling (or Floor) of the Touch Bracket that
expired early. The newly listed Touch Bracket will have the same Last Trade
Day as originally established for the expired Touch Bracket and the same
Dollar Multiplier as the expired Touch Bracket.

(f)

MINIMUM TICK – The Minimum Tick size for EUR/JPY Touch Bracket Variable
Payout Contracts shall be 0.01.

(g)

POSITION LIMIT –The Position Limit for EUR/JPY Touch Bracket Variable Payout
Contracts shall be 100 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
EUR/JPY Touch Bracket Variable Payout Contracts for contracted Market Makers
shall be 100,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the EUR/JPY Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value shall be the amount paid to theholder of either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.
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(m)

EUR/JPY INDEX VALUE – The Source Agency shall calculate and produce a
EUR/JPY Index Value once each second throughout the life of the EUR/JPY
Variable Payout contracts. That is, each second the Source Agency will calculatea EUR/JPY Index Value by taking all Midpoints between the bid/ask spread (tenpips wide or less) occurring in the ten (10) seconds leading up to the Calculation
Time, provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty(30) percent of Midpoints from the data set61, using the remaining EUR/JPY
Midpoints to calculate the EUR/JPY Index Value for that second. The calculation
used is a simple average of the remaining EUR/JPY Midpoints, rounded to one
decimal point past the precision of the underlying market. In the event the time ittakes to collect at least ten (10) Midpoints (ten pips wide or less) exceeds the ten(10) second time period, the EUR/JPY Index Value is calculated by the Source
Agency by taking the last ten (10) Midpoints between the bid/ask spread (ten pips
wide or less) just prior to the Calculation Time and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)EUR/JPY Midpoints to calculate the EUR/JPY Index Value. The calculation used isa simple average of all four (4) EUR/JPY Midpoints, rounded to one decimal point
past the precision of the underlying market.

(n)

EXPIRATION VALUE – The Expiration Value is the EUR/JPY Index Value releasedby the Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE EUR/JPY BINARY CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange EUR/JPY (“EUR/JPY”) Binary Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Euro/ JapaneseYen, herein referred to as “EUR/JPY” as quoted in the Japanese Yen per Euroobtained from the spot EUR/JPY foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

61 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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(d)

TYPE – The type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the EUR/JPY Binary
Contract, the Payout Criteria for the Contracts will be set as follows:
(i)

(ii)

317083742.2

WEEKLY EUR/JPY BINARY CONTRACTS(1)

EXPIRATION TIME – 3 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.50.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fourteen (14) strike levels
will be listed for each Weekly EUR/JPY Binary Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Binary Contract “W” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 0.25
or 0.75 as reported by the Source Agency. Six (6) strike levels will
be generated above Binary Contract W at an interval of 0.50, andseven (7) strike levels will be generated below Binary Contract W atan interval of 0.50 (e.g. W – 0.50; W; W + 0.50). The Contract will
have a Payout Criterion of greater than the strike level value.

DAILY EUR/JPY BINARY CONTRACTS(1)

EXPIRATION TIME – 3 AM, 7 AM, 11 AM, 3 PM, 7 PM, 11 PM ET
CLOSE

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.10.

(3)

NUMBER OF STRIKE LEVELS LISTED – Twenty-one (21) strikelevels will be listed for each Daily EUR/JPY Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in value
ending in either 0.00, 0.20, 0.40, 0.60, or 0.80 as reported by the
Source Agency. Ten (10) strike levels will be generated above
213
213

Binary Contract X at an interval of 0.10, and ten (10) strike levels
will be generated below Binary Contract X at an interval of 0.10 (e.g.
X – 0.10; X; X + 0.10). The Contract will have a Payout Criterion ofgreater than the strike level value.
(iii)

(iv)

INTRADAY EUR/JPY BINARY CONTRACTS(1)

EXPIRATION TIME – 8 PM, 9 PM, 10 PM, 11 PM, 12 AM, 1 AM, 2
AM, 3 AM, 4 AM, 5 AM, 6 AM, 7 AM, 8 AM, 9 AM, 10 AM, 11 AM, 12
PM, 1 PM , 2 PM, 3 PM, 4 PM, 5 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.10.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday EUR/JPY Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.02, 0.04, 0.07, or 0.09 as reported by the Source Agency.
Four (4) strike levels will be generated above Binary Contract Y atan interval of 0.10, and four (4) strike levels will be generated below
Binary Contract Y at an interval of 0.10 (e.g. Y – 0.10; Y; Y + 0.10).
The Contract will have a Payout Criterion of greater than the strikelevel value.

INTRADAY 5-MINUTE EUR/JPY BINARY CONTRACTS(1)

EXPIRATION TIME – 5-Minute Binary Contracts will expire every 5
minutes beginning Sunday at 6:05pm ET and ending Friday at
4:00pm ET.

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.05.

(3)

NUMBER OF STRIKE LEVELS LISTED – Five (5) strike levels will belisted for each Intraday 5-Minute EUR/JPY Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
214

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214immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.01, 0.06, 0.03, or 0.08 as reported by the Source Agency.
Two (2) strike levels will be generated above Binary Contract Z at
an interval of 0.05, and two (2) strike levels will be generated below
Binary Contract Z at an interval of 0.05 (e.g. Z – 0.05; Z; Z + 0.05).
The Contract will have a Payout Criterion of greater than the strikelevel value.
(5)

(v)

Nadex may, in its discretion, temporarily refrain from the listing of
any 5-Minute Binary Contract due to the unavailability of theunderlying market upon which the Contract is based, or any othercondition Nadex determines may be detrimental to the listing of theContract.

Nadex may list additional EUR/JPY Binary Contract with different ranges
of Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for EUR/JPY Binary Contracts shall be$0.25.

(g)

POSITION LIMIT – The Position Limits for EUR/JPY Binary Contracts shall be
2,500 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
EUR/JPY Binary Contracts for contracted Market Makers shall be 5,000 Contracts
per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Expiration Date. No trading in the EUR/JPY Binary Contracts shall occur after its
Last Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date the EUR/JPY number
is released by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the EUR/JPY number is scheduled to be released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney EUR/JPY Binary Contract is $100.

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(m)

EXPIRATION VALUE – The Expiration Value is the price or value of EUR/JPY
released by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all Midpoints between the bid/ask
spread (ten pips wide or less) occurring in the ten (10) seconds leading up to theclose of trading of the EUR/JPY Binary Contract, provided at least ten (10)Midpoints are captured during the ten (10) second period, removing the highest
thirty (30) percent of Midpoints and the lowest thirty (30) percent of Midpoints
from the data set62, using the remaining EUR/JPY Midpoints to calculate theExpiration Value. The calculation used is a simple average of the remaining
EUR/JPY Midpoints, rounded to one decimal point past the precision of theunderlying market. In the event the time it takes to collect at least ten (10)Midpoints (ten pips wide or less) exceeds the ten (10) second time period, theExpiration Value is calculated by the Source Agency by taking the last ten (10)Midpoints between the bid/ask spread (ten pips wide or less) just prior to the closeof trading of the EUR/JPY Binary Contract and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)EUR/JPY Midpoints to calculate the Expiration Value. The calculation used is a
simple average of all four (4) EUR/JPY Midpoints, rounded to one decimal point
past the precision of the underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE GBP/JPY VARIABLE PAYOUT CONTRACTS

RULE 12.40.1 CURRENCY EXCHANGE GBP/JPY “CALL SPREAD” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange GBP/JPY (“GBP/JPY”) Call Spread Variable Payout Contracts,
referred to as a “Call Spread”, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the British Pound/
Japanese Yen, herein referred to as “GBP/JPY” as quoted in the Japanese Yen per
British Pounds obtained from the spot GBP/JPY foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

62 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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216

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the GBP/JPY Call
Spread Variable Payout Contract, the Payout Criteria for the Contracts will be set
as follows;(i)

WEEKLY GBP/JPY CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly GBP/JPY
Call Spread, Nadex shall list one (1) Call Spread Contract, which conforms
to the Payout Criteria listed below:
(1)

(2)

(ii)

WEEKLY GBP/JPY CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 3.75.

B.

FLOOR – The Floor shall be X – 3.75.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

In each case, “X” equals the last GBP/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

WEEKLY GBP/JPY CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly GBP/JPY
Call Spread, Nadex shall list five (5) Call Spread Contracts with overlapping
ranges, which conforms to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X – 1.25; The Floor shall be X –
3.75.

(2)

CONTRACT 2: The Ceiling shall be X; The Floor shall be X – 2.50.

(3)

CONTRACT 3: The Ceiling shall be X + 1.25; The Floor shall be X –
1.25.

(4)

CONTRACT 4: The Ceiling shall be X + 2.50; The Floor shall be X.

(5)

CONTRACT 5: The Ceiling shall be X + 3.75; The Floor shall be X –
1.25.

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(7)

In each case, “X” equals the last GBP/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.
217317083742.2

217

(iii)DAILY GBP/JPY CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00 PM
ET CLOSE – At the commencement of trading in a Daily GBP/JPY Call
Spread Variable Payout Contract, referred to as a ‘Call Spread’, Nadex shalllist one (1) Call Spread Contract, which conforms to the Payout Criteria
listed below:
(1)

(2)

(iv)

(v)

317083742.2

DAILY GBP/JPY CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 2.50.

B.

FLOOR – The Floor shall be X – 2.50.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

In each case, “X” equals the last GBP/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

DAILY GBP/JPY CALL SPREAD CONTRACTS, 3:00 PM ET CLOSE – Nadex
shall list a set of three (3) Call Spread Contracts with overlapping ranges,
which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 2.50.

(2)CONTRACT 2: The Ceiling shall be X + 1.25; The Floor shall be X –
1.25.

(3)

CONTRACT 3: The Ceiling shall be X + 2.50; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(5)

In each case, “X” equals the last GBP/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

INTRADAY GBP/JPY CALL SPREAD CONTRACTS, 6:00PM to 11:00PM,
11:00PM to 7:00AM, and 7:00AM to 3:00PM ET CLOSE – Nadex shall list a
set of three (3) Call Spread Contracts with overlapping ranges, which
conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X- 2.50.

(2)CONTRACT 2: The Ceiling shall be X + 1.25; The Floor shall be X –
1.25.

(3)

CONTRACT 3: The Ceiling shall be X + 2.50; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.
218
218

(5)

(vi)

(vii)

In each case, “X” equals the last GBP/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

INTRADAY 2-HOUR GBP/JPY CALL SPREAD CONTRACTS, 8:00PM,
9:00PM, 10:00PM, 11:00PM, 12:00AM, 1:00AM, 2:00AM, 3:00AM, 4:00AM,
5:00AM, 6:00AM, 7:00AM, 8:00AM, 9:00AM, 10:00AM, 11:00AM, 12:00PM,
1:00PM, 2:00PM, and 3:00PM ET CLOSE – Nadex shall list a set of three(3) Call Spread Contracts that open 2 hours prior to the stated closingtime(s) above with overlapping ranges, which conform to the Payout
Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 1.00.

(2)

CONTRACT 2: The Ceiling shall be X + 0.50; The Floor shall be X –
0.50.

(3)

CONTRACT 3: The Ceiling shall be X + 1.00; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(5)

In each case, “X” equals the last GBP/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for GBP/JPY Call Spread Contracts shallbe 0.01.

(g)

POSITION LIMIT – The Position Limits for GBP/JPY Call Spread Contracts shall be
250 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
GBP/JPY Call Spread Variable Payout Contracts for contracted Market Makers
shall be 500 Contracts per strike level. Date.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the GBP/JPY Expiration Value is released by the Source Agency.
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219

(l)

SETTLEMENT VALUE – The Settlement Value shall be the amount paid to theholder of either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of GBP/JPY Index
Value released by the Source Agency at Expiration on the Expiration Date. The
Expiration Value is calculated by the Source Agency by taking all Midpoints
between the bid/ask spread (ten pips wide or less) occurring in the ten (10)seconds leading up to the close of trading of the GBP/JPY Call Spread Contract,provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty(30) percent of Midpoints from the data set63, using the remaining GBP/JPY
Midpoints to calculate the Expiration Value. The calculation used is a simple
average of the remaining GBP/JPY Midpoints, rounded to one decimal point past
the precision of the underlying market. In the event the time it takes to collect atleast ten (10) Midpoints (ten pips wide or less) exceeds the ten (10) second time
period, the Expiration Value is calculated by the Source Agency by taking the lastten (10) Midpoints between the bid/ask spread (ten pips wide or less) just prior tothe close of trading of the GBP/JPY Call Spread Contract and removing the highest
three (3) Midpoints and the lowest three (3) Midpoints, using the remaining four(4) GBP/JPY Midpoints to calculate the Expiration Value. The calculation used isa simple average of all four (4) GBP/JPY Midpoints, rounded to one decimal point
past the precision of the underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.

RULE 12.40.2 CURRENCY EXCHANGE GBP/JPY “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange GBP/JPY (“GBP/JPY”) Touch Bracket Variable Payout
Contracts, referred to as a ‘Touch Bracket”, issued by Nadex.

63 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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220

(b)

UNDERLYING – The Underlying for this Class of Contracts is the British Pound/
Japanese Yen, herein referred to as “GBP/JPY” as quoted in the Japanese Yen per
British Pounds obtained from the spot GBP/JPY foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the GBP/JPY
Touch Bracket Contracts, the Payout Criteria for the Contracts will be set as
follows:(i)(ii)

WEEKLY GBP/JPY TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Close Time is the earlier of 3:00PM ET on the last Trade Day of the contract
listing, or when the GBP/JPY Index Value is equal to or greater than the
Ceiling, or equal to or less than the Floor. Nadex shall list a set of four (4)Touch Bracket Variable Payout Contracts, referred to as a ‘Touch Bracket’,that open at 6:00PM ET on the first Trade Day of the week, with overlapping
ranges, which conform to the Payout Criteria listed below.
(1)

CONTRACT 1: The Ceiling shall be X + 0.80; The Floor shall be X –
0.20.

(2)

CONTRACT 2: The Ceiling shall be X + 0.60; The Floor shall be X –
0.40.

(3)

CONTRACT 3: The Ceiling shall be X + 0.40; The Floor shall be X –
0.60.

(4)

CONTRACT 4: The Ceiling shall be X + 0.20; The Floor shall be X –
0.80.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(6)

In each case, “X” equals the last GBP/JPY price, as reported by the
Source Agency, rounded to the nearest 0.01.

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 0.80 (or 0.20) and a Floor of X – 0.20 (or 0.80)
where X equals the Ceiling (or Floor) of the Touch Bracket that expired
early. The newly listed Touch Bracket will have the same Last Trade Day as
originally established for the expired Touch Bracket and the same Dollar
Multiplier as the expired Touch Bracket.
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221

(f)

MINIMUM TICK – The Minimum Tick size for GBP/JPY Touch Bracket Variable
Payout Contracts shall be 0.01.

(g)

POSITION LIMIT –The Position Limit for GBP/JPY Touch Bracket Variable Payout
Contracts shall be 100 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
GBP/JPY Touch Bracket Variable Payout Contracts for contracted Market Makers
shall be 100,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the GBP/JPY Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value shall be the amount paid to theholder of either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

GBP/JPY INDEX VALUE – The Source Agency shall calculate and produce a
GBP/JPY Index Value once each second throughout the life of the GBP/JPY
Variable Payout contracts. That is, each second the Source Agency will calculatea GBP/JPY Index Value by taking all Midpoints between the bid/ask spread (tenpips wide or less) occurring in the ten (10) seconds leading up to the Calculation
Time, provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty(30) percent of Midpoints from the data set64, using the remaining GBP/JPY
Midpoints to calculate the GBP/JPY Index Value for that second. The calculation
used is a simple average of the remaining GBP/JPY Midpoints, rounded to one
decimal point past the precision of the underlying market. In the event the time ittakes to collect at least ten (10) Midpoints (ten pips wide or less) exceeds the ten(10) second time period, the GBP/JPY Index Value is calculated by the Source
Agency by taking the last ten (10) Midpoints between the bid/ask spread (ten pips
wide or less) just prior to the Calculation Time and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)64 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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222

GBP/JPY Midpoints to calculate the GBP/JPY Index Value. The calculation used
is a simple average of all four (4) GBP/JPY Midpoints, rounded to one decimal
point past the precision of the underlying market.
(n)

EXPIRATION VALUE – The Expiration Value is the GBP/JPY Index Value releasedby the Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE GBP/JPY BINARY CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange GBP/JPY (“GBP/JPY”) Binary Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the British Pound/
Japanese Yen, herein referred to as “GBP/JPY” as quoted in the Japanese Yen per
British Pounds obtained from the spot GBP/JPY foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the GBP/JPY Binary
Contract, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY GBP/JPY BINARY CONTRACTS(1)

EXPIRATION TIME – 3 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.50.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fourteen (14) strike levels
will be listed for each Weekly GBP/JPY Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “W” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 0.25
or 0.75 as reported by the Source Agency. Six (6) strike levels will223

317083742.2

223

be generated above Binary Contract W at an interval of 0.50, andseven (7) strike levels will be generated below Binary Contract W atan interval of 0.50 (e.g. W – 0.50; W; W + 0.50). The Contract will
have a Payout Criterion of greater than the strike level value.
(ii)

(iii)

DAILY GBP/JPY BINARY CONTRACTS(1)

EXPIRATION TIME – 7 AM, 3 PM, 11 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.20.

(3)

NUMBER OF STRIKE LEVELS LISTED – Twenty-one (21) strikelevels will be listed for each Daily GBP/JPY Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.0, 0.20, 0.40, 0.60, or 0.80 as reported by the Source
Agency. Ten (10) strike levels will be generated above Binary
Contract X at an interval of 0.20, and ten (10) strike levels will be
generated below Binary Contract X at an interval of 0.20 (e.g. X –0.20; X; X + 0.20). The Contract will have a Payout Criterion ofgreater than the strike level value.

INTRADAY GBP/JPY BINARY CONTRACTS(1)

EXPIRATION TIME – 10 AM, 11 AM, 12 PM, 1 PM, 2 PM, 3 PM ET
CLOSE

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.10.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday GBP/JPY Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.02, 0.04, 0.07, or 0.09 as reported by the Source Agency.
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Four (4) strike levels will be generated above Binary Contract Y atan interval of 0.10, and four (4) strike levels will be generated below
Binary Contract Y at an interval of 0.10 (e.g. Y – 0.10; Y; Y + 0.10).
The Contract will have a Payout Criterion of greater than the strikelevel value.
(iv)

(v)

(f)

INTRADAY 5-MINUTE GBP/JPY BINARY CONTRACTS(1)

EXPIRATION TIME – 5-Minute Binary Contracts will expire every 5
minutes beginning Sunday at 6:05pm ET and ending Friday at
4:00pm ET.

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.05.

(3)

NUMBER OF STRIKE LEVELS LISTED – Five (5) strike levels will belisted for each Intraday 5-Minute GBP/JPY Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.01, 0.06, 0.03, or 0.08 as reported by the Source Agency.
Two (2) strike levels will be generated above Binary Contract Z at
an interval of 0.05, and two (2) strike levels will be generated below
Binary Contract Z at an interval of 0.05 (e.g. Z – 0.05; Z; Z + 0.05).
The Contract will have a Payout Criterion of greater than the strikelevel value.

(5)

Nadex may, in its discretion, temporarily refrain from the listing of
any 5-Minute Binary Contract due to the unavailability of theunderlying market upon which the Contract is based, or any othercondition Nadex determines may be detrimental to the listing of theContract.

Nadex may list additional GBP/JPY Binary Contracts with different ranges
of Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

MINIMUM TICK – The Minimum Tick size for GBP/JPY Binary Contracts shall be$0.25.

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(g)

POSITION LIMIT – The Position Limits for GBP/JPY Binary Contracts shall be
2,500 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
GBP/JPY Binary Contracts for contracted Market Makers shall be 5,000 Contracts
per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Expiration Date. No trading in the GBP/JPY Binary Contracts shall occur after its
Last Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date the GBP/JPY number
is released by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the GBP/JPY number is scheduled to be released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney GBP/JPY Binary Contract is $100.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of GBP/JPY
released by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all Midpoints between the bid/ask
spread (ten pips wide or less) occurring in the ten (10) seconds leading up to theclose of trading of the GBP/JPY Binary Contract, provided at least ten (10)Midpoints are captured during the ten (10) second period, removing the highest
thirty (30) percent of Midpoints and the lowest thirty (30) percent of Midpoints
from the data set65, using the remaining GBP/JPY Midpoints to calculate theExpiration Value. The calculation used is a simple average of the remaining
GBP/JPY Midpoints, rounded to one decimal point past the precision of theunderlying market. In the event the time it takes to collect at least ten (10)Midpoints (ten pips wide or less) exceeds the ten (10) second time period, theExpiration Value is calculated by the Source Agency by taking the last ten (10)Midpoints between the bid/ask spread (ten pips wide or less) just prior to the closeof trading of the GBP/JPY Binary Contract and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)GBP/JPY Midpoints to calculate the Expiration Value. The calculation used is a

65 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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226simple average of all four (4) GBP/JPY Midpoints, rounded to one decimal point
past the precision of the underlying market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE EUR/GBP VARIABLE PAYOUT CONTRACTS

RULE 12.42.1 CURRENCY EXCHANGE EUR/GBP “CALL SPREAD” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange EUR/GBP (“EUR/GBP”) Call Spread Variable Payout Contracts,
referred to as a “Call Spread”, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Euro/British
Pound, herein referred to as “EUR/GBP” as quoted in the British Pounds per Euroobtained from the spot EUR/GBP foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the EUR/GBP Call
Spread Variable Payout Contract, the Payout Criteria for the Contracts will be set
as follows;(i)

WEEKLY EUR/GBP CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly EUR/GBP
Call Spread, Nadex shall list one (1) Call Spread Contract, which conforms
to the Payout Criteria listed below:(1)

WEEKLY EUR/GBP CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 0.0375.

B.

FLOOR – The Floor shall be X – 0.0375.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be
10,000.

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(2)

(ii)

(iii)

In each case, “X” equals the last EUR/GBP price, as reported by the
Source Agency, rounded to the nearest 0.0010.

WEEKLY EUR/GBP CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly EUR/GBP
Call Spread, Nadex shall list five (5) Call Spread Contracts with overlapping
ranges, which conforms to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X – 0.0125; The Floor shall be X
– 0.0375.

(2)

CONTRACT 2: The Ceiling shall be X; The floor shall be X – 0.0250.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0125; The Floor shall be X
– 0.0125.

(4)

CONTRACT 4: The Ceiling shall be X + 0.0250; The Floor shall be X.

(5)

CONTRACT 5: The Ceiling shall be X + 0.0375; The Floor shall be X
– 0.0125.

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(7)

In each case, “X” equals the last EUR/GBP price, as reported by the
Source Agency, rounded to the nearest 0.0010.

DAILY EUR/GBP CALL SPREAD VARIABLE CONTRACTS, 3:00 PM ET
CLOSE - At the commencement of trading in a Daily EUR/GBP Call Spread
Variable Payout Contract, referred to as a ‘Call Spread’, Nadex shall list one(1) Call Spread Contract, which conforms to the Payout Criteria listed
below:(1)(2)

DAILY EUR/GBP CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 0.0250.

B.

FLOOR – The Floor shall be X – 0.0250.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be
10,000.

In each case, “X” equals the last EUR/GBP price, as reported by the
Source Agency, rounded to the nearest 0.0010.

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(iv)

(v)

DAILY EUR/GBP CALL SPREAD CONTRACTS, 3:00 PM ET CLOSE – Nadex
shall list a set of three (3) Call Spread Contracts with overlapping ranges,
which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 0.0250.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0125; The Floor shall be X
– 0.0125.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0250; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(5)In each case, “X” equals the last EUR/GBP price, as reported by the
Source Agency, rounded to the nearest 0.0010.

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for EUR/GBP Call Spread Contracts shallbe 0.0001.

(g)

POSITION LIMIT – The Position Limits for EUR/GBP Call Spread Contracts shallbe 250 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
EUR/GBP Call Spread Variable Payout Contracts for contracted Market Makers
shall be 500 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the EUR/GBP Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value shall be the amount paid to theholder of either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

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229

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of EUR/GBP Index
Value released by the Source Agency at Expiration on the Expiration Date. The
Expiration Value is calculated by the Source Agency by taking all Midpoints
between the bid/ask spread (ten pips wide or less) occurring in the ten (10)seconds leading up to the close of trading of the EUR/GBP Call Spread Contract,provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty(30) percent of Midpoints from the data set66, using the remaining EUR/GBP
Midpoints to calculate the Expiration Value. The calculation used is a simple
average of the remaining EUR/GBP Midpoints, rounded to one decimal point past
the precision of the underlying market. In the event the time it takes to collect atleast ten (10) Midpoints (ten pips wide or less) exceeds the ten (10) second time
period, the Expiration Value is calculated by the Source Agency by taking the lastten (10) Midpoints between the bid/ask spread (ten pips wide or less) just prior tothe close of trading of the EUR/GBP Call Spread Contract and removing the highest
three (3) Midpoints and the lowest three (3) Midpoints, using the remaining four(4) EUR/GBP Midpoints to calculate the Expiration Value. The calculation used isa simple average of all four (4) EUR/GBP Midpoints, rounded to one decimal point
past the precision of the underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.

RULE 12.42.2 CURRENCY EXCHANGE EUR/GBP “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange EUR/GBP (“EUR/GBP”) Touch Bracket Variable Payout
Contracts, referred to as a ‘Touch Bracket”, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Euro/British
Pound, herein referred to as “EUR/GBP” as quoted in the British Pounds per Euroobtained from the spot EUR/GBP foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

66 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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230

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the EUR/GBP
Touch Bracket Contracts, the Payout Criteria for the Contracts will be set as
follows:(i)(ii)

WEEKLY EUR/GBP TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Close Time is the earlier of 3:00PM ET on the last Trade Day of the contract
listing, or when the EUR/GBP Index Value is equal to or greater than the
Ceiling, or equal to or less than the Floor. Nadex shall list a set of four (4)Touch Bracket Variable Payout Contracts, referred to as a ‘Touch Bracket’,that open at 6:00PM ET on the first Trade Day of the week, with overlapping
ranges, which conform to the Payout Criteria listed below.
(1)

CONTRACT 1: The Ceiling shall be X + 0.0060; The Floor shall be X
– 0.0015.

(2)

CONTRACT 2: The Ceiling shall be X + 0.0045; The Floor shall be X
– 0.0030.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0030; The Floor shall be X
– 0.0045.

(4)

CONTRACT 4: The Ceiling shall be X + 0.0015; The Floor shall be X
– 0.0060.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.

(6)

In each case, “X” equals the last EUR/GBP price, as reported by the
Source Agency, rounded to the nearest 0.0001.

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 0.0060 (or 0.0015) and a Floor of X – 0.0015(or 0.0060) where X equals the Ceiling (or Floor) of the Touch Bracket that
expired early. The newly listed Touch Bracket will have the same Last Trade
Day as originally established for the expired Touch Bracket and the same
Dollar Multiplier as the expired Touch Bracket.

(f)

MINIMUM TICK –The Minimum Tick size for the EUR/GBP Touch Bracket Variable
Payout Contracts shall be 0.0001.

(g)

POSITION LIMIT – The Position Limit for EUR/GBP Touch Bracket Variable Payout
Contracts shall be 100 Contracts per Class.

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(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
EUR/GBP Touch Bracket Variable Payout Contracts for contracted Market Makers
shall be 100,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the EUR/GBP Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EUR/GBP INDEX VALUE – The Source Agency shall calculate and produce a
EUR/GBP Index Value once each second throughout the life of the EUR/GBP
Variable Payout contracts. That is, each second the Source Agency will calculatea EUR/GBP Index Value by taking all Midpoints between the bid/ask spread (tenpips wide or less) occurring in the ten (10) seconds leading up to the Calculation
Time, provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty(30) percent of Midpoints from the data set67, using the remaining EUR/GBP
Midpoints to calculate the EUR/GBP Index Value for that second. The calculation
used is a simple average of the remaining EUR/GBP Midpoints, rounded to one
decimal point past the precision of the underlying market. In the event the time ittakes to collect at least ten (10) Midpoints (ten pips wide or less) exceeds the ten(10) second time period, the EUR/GBP Index Value is calculated by the Source
Agency by taking the last ten (10) Midpoints between the bid/ask spread (ten pips
wide or less) just prior to the Calculation Time and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)EUR/GBP Midpoints to calculate the EUR/GBP Index Value. The calculation used
is a simple average of all four (4) EUR/GBP Midpoints, rounded to one decimal
point past the precision of the underlying market.

67 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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232

(n)

EXPIRATION VALUE – The Expiration Value is the EUR/GBP Index Value releasedby the Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE EUR/GBP BINARY CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange EUR/GBP (“EUR/GBP”) Binary Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Euro/British
Pound herein referred to as “EUR/GBP” as quoted in British Pounds per Euroobtained from the spot EUR/GBP foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the EUR/GBP Binary
Contract, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY EUR/GBP BINARY CONTRACTS(1)

EXPIRATION TIME – 3 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0050.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fourteen (14) strike levels
will be listed for each Weekly EUR/GBP Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in
0.0025 or 0.0075 as reported by the Source Agency. Six (6) strikelevels will be generated above Binary Contract X at an interval of
0.0050, and seven (7) strike levels will be generated below Binary
Contract X at an interval of 0.0050 (e.g. X – 0.0050; X; X + 0.0050).
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The Contract will have a Payout Criterion of greater than the strikelevel value.
(ii)

(iii)

DAILY EUR/GBP BINARY CONTRACTS(1)

EXPIRATION TIME – 3 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0010.

(3)

NUMBER OF STRIKE LEVELS LISTED – Twenty-one (21) strikelevels will be listed for each Daily EUR/GBP Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in
0.0020 as reported by the Source Agency. Ten (10) strike levels will
be generated above Binary Contract Y at an interval of 0.0010, andten (10) strike levels will be generated below Binary Contract Y atan interval of 0.0010 (e.g. Y – 0.0010; Y; Y + 0.0010). The Contract
will have a Payout Criterion of greater than the strike level value.

INTRADAY EUR/GBP BINARY CONTRACTS(1)

EXPIRATION TIME – 10 AM, 11 AM, 12 PM,1 PM , 2 PM, 3 PM ET
CLOSE

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0010.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday EUR/GBP Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in
0.0001 as reported by the Source Agency. Four (4) strike levels will
be generated above Binary Contract Z at an interval of 0.0010, andfour (4) strike levels will be generated below Binary Contract Z at

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an interval of 0.0010 (e.g. Z – 0.0010; Z; Z + 0.0010). The Contract
will have a Payout Criterion of greater than the strike level value.
(iv)

Nadex may list additional EUR/GBP Binary Contracts with different ranges
of Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for EUR/GBP Binary Contracts shall be$0.25.

(g)

POSITION LIMIT – The Position Limits for EUR/GBP Binary Contracts shall be
2,500 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
EUR/GBP Binary Contracts for contracted Market Makers shall be 5,000 Contracts
per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same as the
Expiration Date. No trading in the EUR/GBP Binary Contracts shall occur after its
Last Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date on which the EUR/GBP
number as reported by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the EUR/GBP number is scheduled to be released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on the Settlement Date. The Settlement Value of an in
the money EUR/GBP Binary Contract is $100.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of EUR/GBP
released by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all Midpoints between the bid/ask
spread (ten pips wide or less) occurring in the ten (10) seconds leading up to theclose of trading of the EUR/GBP Binary Contract, provided at least ten (10)Midpoints are captured during the ten (10) second period, removing the highest
thirty (30) percent of Midpoints and the lowest thirty (30) percent of Midpoints
from the data set68, using the remaining EUR/GBP Midpoints to calculate theExpiration Value. The calculation used is a simple average of the remaining

68 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

235
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235EUR/GBP Midpoints, rounded to one decimal point past the precision of theunderlying market. In the event the time it takes to collect at least ten (10)Midpoints (ten pips wide or less) exceeds the ten (10) second time period, theExpiration Value is calculated by the Source Agency by taking the last ten (10)Midpoints between the bid/ask spread (ten pips wide or less) just prior to the closeof trading of the EUR/GBP Binary Contract and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)EUR/GBP Midpoints to calculate the Expiration Value. The calculation used is a
simple average of all four (4) EUR/GBP Midpoints, rounded to one decimal point
past the precision of the underlying market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE AUD/JPY VARIABLE PAYOUT CONTRACTS

RULE 12.44.1 CURRENCY EXCHANGE AUD/JPY “CALL SPREAD” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange AUD/JPY (“AUD/JPY”) Call Spread Variable Payout Contracts,
referred to as a “Call Spread”, issued by Nadex. Variable Payout Contracts issued
by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Australian
Dollar/Japanese Yen, herein referred to as “AUD/JPY” as quoted in the Japanese
Yen per Australian Dollar obtained from the spot AUD/JPY foreign currency
market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the AUD/JPY Call
Spread Variable Payout Contract, the Payout Criteria for the Contracts will be set
as follows;(i)

WEEKLY AUD/JPY CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly AUD/JPY
Call Spread, Nadex shall list one (1) Call Spread Contract, which conforms
to the Payout Criteria listed below:
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(1)

(2)

(ii)

(iii)

WEEKLY AUD/JPY CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 3.75.

B.

FLOOR – The Floor shall be X – 3.75.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

In each case, “X” equals the last AUD/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

WEEKLY AUD/JPY CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00
PM ET CLOSE – At the commencement of trading in a Weekly AUD/JPY
Call Spread, Nadex shall list five (5) Call Spread Contracts with overlapping
ranges, which conforms to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X – 1.25; The Floor shall be X –
3.75.

(2)

CONTRACT 2: The Ceiling shall be X; The Floor shall be X – 2.50.

(3)

CONTRACT 3: The Ceiling shall be X + 1.25; The Floor shall be X –
1.25.

(4)

CONTRACT 4: The Ceiling shall be X + 2.50; The Floor shall be X.

(5)

CONTRACT 5: The Ceiling shall be X + 3.75; The Floor shall be X –
1.25.

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(7)

In each case, “X” equals the last AUD/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

DAILY AUD/JPY CALL SPREAD VARIABLE PAYOUT CONTRACTS, 3:00 PM
ET CLOSE – At the commencement of trading in a Daily AUD/JPY Call
Spread Variable Payout Contract, referred to as a ‘Call Spread’, Nadex shalllist one (1) Call Spread Contract, which conforms to the Payout Criteria
listed below:(1)

DAILY AUD/JPY CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 2.50.

B.

FLOOR – The Floor shall be X – 2.50.
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C.
(2)

(iv)

(v)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

In each case, “X” equals the last AUD/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

DAILY AUD/JPY CALL SPREAD CONTRACTS, 3:00 PM ET CLOSE – Nadex
shall list a set of three (3) Call Spread Contracts with overlapping ranges,
which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 2.50.

(2)CONTRACT 2: The Ceiling shall be X + 1.25; The Floor shall be X –
1.25.

(3)

CONTRACT 3: The Ceiling shall be X + 2.50; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(5)

In each case, “X” equals the last AUD/JPY price, as reported by the
Source Agency, rounded to the nearest 0.10.

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for AUD/JPY Call Spread Contracts shallbe 0.01.

(g)

POSITION LIMIT – The Position Limits for AUD/JPY Call Spread Contracts shallbe 250 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
AUD/JPY Call Spread Variable Payout Contracts for contracted Market Makers
shall be 500 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the AUD/JPY Expiration Value is released by the Source Agency.

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(l)

SETTLEMENT VALUE – The Settlement Value shall be the amount paid to theholder of either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of AUD/JPY Index
Value released by the Source Agency at Expiration on the Expiration Date. The
Expiration Value is calculated by the Source Agency by taking all Midpoints
between the bid/ask spread (ten pips wide or less) occurring in the ten (10)seconds leading up to the close of trading of the AUD/JPY Call Spread Contract,provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty(30) percent of Midpoints from the data set69, using the remaining AUD/JPY
Midpoints to calculate the Expiration Value. The calculation used is a simple
average of the remaining AUD/JPY Midpoints, rounded to one decimal point past
the precision of the underlying market. In the event the time it takes to collect atleast ten (10) Midpoints (ten pips wide or less) exceeds the ten (10) second time
period, the Expiration Value is calculated by the Source Agency by taking the lastten (10) Midpoints between the bid/ask spread (ten pips wide or less) just prior tothe close of trading of the AUD/JPY Call Spread Contract and removing the highest
three (3) Midpoints and the lowest three (3) Midpoints, using the remaining four(4) AUD/JPY Midpoints to calculate the Expiration Value. The calculation used isa simple average of all four (4) AUD/JPY Midpoints, rounded to one decimal point
past the precision of the underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.

RULE 12.44.2 CURRENCY EXCHANGE AUD/JPY “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange AUD/JPY (“AUD/JPY”) Touch Bracket Variable Payout
Contracts, referred to as a ‘Touch Bracket”, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Australian
Dollar/Japanese Yen, herein referred to as “AUD/JPY” as quoted in the Japanese

69 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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Yen per Australian Dollar obtained from the spot AUD/JPY foreign currency
market.
(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the AUD/JPY
Touch Bracket Contracts, the Payout Criteria for the Contracts will be set as
follows:(i)(ii)

WEEKLY AUD/JPY TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Close Time is the earlier of 3:00PM ET on the last Trade Day of the contract
listing, or when the AUD/JPY Index Value is equal to or greater than the
Ceiling, or equal to or less than the Floor. Nadex shall list a set of four (4)Touch Bracket Variable Payout Contracts, referred to as a ‘Touch Bracket’,that open at 6:00PM ET on the first Trade Day of the week, with overlapping
ranges, which conform to the Payout Criteria listed below.
(1)

CONTRACT 1: The Ceiling shall be X + 0.600; The Floor shall be X –0.150.

(2)

CONTRACT 2: The Ceiling shall be X + 0.450; The Floor shall be X –0.300.

(3)

CONTRACT 3: The Ceiling shall be X + 0.300; The Floor shall be X –0.450.

(4)

CONTRACT 4: The Ceiling shall be X + 0.150; The Floor shall be X –0.600.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.

(6)

In each case, “X” equals the last AUD/JPY price, as reported by the
Source Agency, rounded to the nearest 0.01.

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 0.600 (or 0.150) and a Floor of X – 0.150 (or0.600) where X equals the Ceiling (or Floor) of the Touch Bracket that
expired early. The newly listed Touch Bracket will have the same Last Trade
Day as originally established for the expired Touch Bracket and the same
Dollar Multiplier as the expired Touch Bracket.

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(f)

MINIMUM TICK – The Minimum Tick size for AUD/JPY Touch Bracket Variable
Payout Contracts shall be 0.01.

(g)

POSITION LIMIT – The Position Limit for AUD/JPY Touch Bracket Variable Payout
Contracts shall be 100 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
AUD/JPY Touch Bracket Variable Payout Contracts for contracted Market Makers
shall be 100,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the AUD/JPY Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value shall be the amount paid to theholder of either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

AUD/JPY INDEX VALUE – The Source Agency shall calculate and produce a
AUD/JPY Index Value once each second throughout the life of the AUD/JPY
Variable Payout contracts. That is, each second the Source Agency will calculatea AUD/JPY Index Value by taking all Midpoints between the bid/ask spread (tenpips wide or less) occurring in the ten (10) seconds leading up to the Calculation
Time, provided at least ten (10) Midpoints are captured during the ten (10) second
period, removing the highest thirty (30) percent of Midpoints and the lowest thirty(30) percent of Midpoints from the data set70, using the remaining AUD/JPY
Midpoints to calculate the AUD/JPY Index Value for that second. The calculation
used is a simple average of the remaining AUD/JPY Midpoints, rounded to one
decimal point past the precision of the underlying market. In the event the time ittakes to collect at least ten (10) Midpoints (ten pips wide or less) exceeds the ten(10) second time period, the AUD/JPY Index Value is calculated by the Source
Agency by taking the last ten (10) Midpoints between the bid/ask spread (ten pips
wide or less) just prior to the Calculation Time and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)70 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

241
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241AUD/JPY Midpoints to calculate the AUD/JPY Index Value. The calculation used
is a simple average of all four (4) AUD/JPY Midpoints, rounded to one decimal
point past the precision of the underlying market.
(n)

EXPIRATION VALUE – The Expiration Value is the AUD/JPY Index Value releasedby the Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE AUD/JPY BINARY CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange AUD/JPY (“AUD/JPY”) Binary Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Australian dollar/
Japanese Yen, herein referred to as “AUD/JPY” as quoted in the Japanese Yen per
Australian dollar obtained from the spot AUD/JPY foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the AUD/JPY Binary
Contract, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY AUD/JPY BINARY CONTRACTS(1)

EXPIRATION TIME – 3 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.50.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fourteen (14) strike levels
will be listed for each Weekly AUD/JPY Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 0.25
or 0.75 as reported by the Source Agency. Six (6) strike levels will242

317083742.2

242be generated above Binary Contract X at an interval of 0.50, andseven (7) strike levels will be generated below Binary Contract X at
an interval of 0.50 (e.g. X – 0.50; X; X + 0.50). The Contract will havea Payout Criterion of greater than the strike level value.
(ii)

(iii)

DAILY AUD/JPY BINARY CONTRACTS(1)

EXPIRATION TIME – 7 AM, 3 PM, 11 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.10.

(3)

NUMBER OF STRIKE LEVELS LISTED – Twenty-one (21) strikelevels will be listed for each Daily AUD/JPY Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 0.20
as reported by the Source Agency. Ten (10) strike levels will be
generated above Binary Contract Y at an interval of 0.10, and ten(10) strike levels will be generated below Binary Contract Y at aninterval of 0.10 (e.g. Y – 0.10; Y; Y + 0.10). The Contract will have a
Payout Criterion of greater than the strike level value.

INTRADAY AUD/JPY BINARY CONTRACTS(1)

EXPIRATION TIME – 10 AM, 11 AM, 12 PM, 1 PM, 2 PM, 3 PM ET
CLOSE

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.05.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday AUD/JPY Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 0.01
as reported by the Source Agency. Four (4) strike levels will be
generated above Binary Contract Z at an interval of 0.05, and four243

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243

(4) strike levels will be generated below Binary Contract Z at aninterval of 0.05 (e.g. Z – 0.05; Z; Z + 0.05). The Contract will have a
Payout Criterion of greater than the strike level value.
(iv)

Nadex may list additional AUD/JPY Binary Contracts with different ranges
of Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for AUD/JPY Binary Contracts shall be$0.25.

(g)

POSITION LIMIT – The Position Limits for AUD/JPY Binary Contracts shall be
2,500 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
EUR/USD Binary Contracts for contracted Market Makers shall be 5,000 Contracts
per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Expiration Date. No trading in the AUD/JPY Binary Contracts shall occur after its
Last Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date the AUD/JPY number
is released by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the AUD/JPY number is scheduled to be released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney AUD/JPY Binary Contract is $100.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of AUD/JPY
released by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all Midpoints between the bid/ask
spread (ten pips wide or less) occurring in the ten (10) seconds leading up to theclose of trading of the AUD/JPY Binary Contract, provided at least ten (10)Midpoints are captured during the ten (10) second period, removing the highest
thirty (30) percent of Midpoints and the lowest thirty (30) percent of Midpoints
from the data set71, using the remaining AUD/JPY Midpoints to calculate the71 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.

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244

Expiration Value. The calculation used is a simple average of the remaining
AUD/JPY Midpoints, rounded to one decimal point past the precision of theunderlying market. In the event the time it takes to collect at least ten (10)Midpoints (ten pips wide or less) exceeds the ten (10) second time period, theExpiration Value is calculated by the Source Agency by taking the last ten (10)Midpoints between the bid/ask spread (ten pips wide or less) just prior to the closeof trading of the AUD/JPY Binary Contract and removing the highest three (3)Midpoints and the lowest three (3) Midpoints, using the remaining four (4)AUD/JPY Midpoints to calculate the Expiration Value. The calculation used is a
simple average of all four (4) AUD/JPY Midpoints, rounded to one decimal point
past the precision of the underlying market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CURRENCY EXCHANGE USD/MXN BINARY CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCurrency Exchange USD/MXN (“USD/MXN”) Binary Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the US
dollar/Mexican peso herein referred to as “USD/MXN” as quoted in Mexican pesos
per US dollar obtained from the spot USD/MXN foreign currency market.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the USD/MXN Binary
Contract, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY USD/MXN BINARY CONTRACTS(1)

EXPIRATION TIME – 3 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.1.

(3)

NUMBER OF STRIKE LEVELS LISTED – Thirteen (13) strike levels
will be listed for each Weekly USD/MXN Binary Contract Series.

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245

(4)

(ii)

(iii)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “W” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.025 or 0.075 as reported by the Source Agency. Six (6)strike levels will be generated above Binary Contract W at aninterval of 0.1, and six (6) strike levels will be generated below
Binary Contract W at an interval of 0.1 (e.g. W – 0.1; W; W + 0.1).
The Contract will have a Payout Criterion of greater than the strikelevel value.

DAILY USD/MXN BINARY CONTRACTS(1)

EXPIRATION TIME – 3 PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.04.

(3)

NUMBER OF STRIKE LEVELS LISTED – Twenty-one (21) strikelevels will be listed for each Daily USD/MXN Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 0.02
as reported by the Source Agency. Ten (10) strike levels will be
generated above Binary Contract X at an interval of 0.04, and ten(10) strike levels will be generated below Binary Contract X at aninterval of 0.04 (e.g. X – 0.04; X; X + 0.04). The Contract will have a
Payout Criterion of greater than the strike level value.

INTRADAY 2-HOUR USD/MXN BINARY CONTRACTS(1)

EXPIRATION TIME – 10 AM, 11 AM, 12 PM, PM , 2 PM, 3 PM ET
CLOSE

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.016.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fifteen (15) strike levels will
be listed for each Intraday 2-Hour USD/MXN Binary Contract Series.
246

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246

(4)

(iv)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.000, 0.002, 0.004, 0.006 or 0.008 as reported by the Source
Agency. Seven (7) strike levels will be generated above Binary
Contract Y at an interval of 0.016, and seven (7) strike levels will be
generated below Binary Contract Y at an interval of 0.016 (e.g. Y –0.016; Y; Y + 0.016). The Contract will have a Payout Criterion ofgreater than the strike level value.

Nadex may list additional USD/MXN Binary Contracts with different ranges
of Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for USD/MXN Binary Contracts shall be
0.25.

(g)

POSITION LIMIT – The Position Limits for USD/MXN Binary Contracts shall be
2,500 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
USD/MXN Binary Contracts for contracted Market Makers shall be 5,000 Contracts
per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same as the
Expiration Date. No trading in the USD/MXN Binary Contracts shall occur after its
Last Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date on which the USD/MXN
number as reported by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the USD/MXN number is scheduled to be released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on the Settlement Date. The Settlement Value of an in
the money USD/MXN Binary Contract is $100.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of USD/MXN
released by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all Midpoints between the bid/ask
spread (250 pips wide or less) occurring in the ten (10) seconds leading up to the247

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247

close of trading of the USD/MXN Binary Contract, provided at least ten (10)Midpoints are captured during the ten (10) second period, removing the highest
thirty (30) percent of Midpoints and the lowest thirty (30) percent of Midpoints
from the data set72, using the remaining USD/MXN Midpoints to calculate theExpiration Value. The calculation used is a simple average of the remaining
USD/MXN Midpoints, rounded to the fourth decimal precision point. In the eventthe time it takes to collect at least ten (10) Midpoints (250 pips wide or less)exceeds the ten (10) second time period, the Expiration Value is calculated by the
Source Agency by taking the last ten (10) Midpoints between the bid/ask spread(250 pips wide or less) just prior to the close of trading of the USD/MXN Binary
Contract and removing the highest three (3) Midpoints and the lowest three (3)Midpoints, using the remaining four (4) USD/MXN Midpoints to calculate theExpiration Value. The calculation used is a simple average of all four (4) USD/MXN
Midpoints, rounded to the fourth decimal precision point.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
– 12.53 [RESERVED]
JAPAN 225 VARIABLE PAYOUT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the Japan
225 Variable Payout Contracts issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the price of the SGX®
Nikkei 225 Index Futures contracts (“NKFC”) traded on the Singapore Exchange(SGX)73. The NKFC trade prices that will be used to calculate the Underlying will be

72 If 30% of the data set would result in a non-integer number of Midpoints, the number of Midpoints to be removed

from the set will be rounded down. For example, if the number of Midpoints collected during the last 10 seconds prior
to the close of trading was 14, 30% of the data set would be 4.2 Midpoints. As 4.2 is a non-integer number, the value
will be rounded down, and the 4 highest and 4 lowest Midpoints will be removed from the data set.
73 SGX® is a registered service mark of the Singapore Exchange Limited (“SGX”). Nikkei is a registered mark of Nikkei,
Inc. All rights in the Trademarks and Futures Trading Data of SGX vest in Singapore Exchange Limited (“SGX”). The
Japan 225 Variable Payout Contract is not sponsored, endorsed, sold or promoted by SGX. SGX makes norepresentation or warranty, express or implied to the investors in the Japan 225 Variable Payout Contract or any
member of the public in any manner whatsoever regarding the advisability of investing in any financial product generally
or in particularly the Japan 225 Variable Payout Contract. The relationship of SGX towards Nadex is in respect oflicensing the use of the SGX Nikkei 225 Index Futures Trading Data. SGX has no obligation to take the needs of theinvestors of the Japan 225 Variable Payout Contract into consideration in determining, composing or calculating the
SGX Nikkei 225 Index Futures Trading Data. SGX is neither responsible for nor has participated in the structure of theJapan 225 Variable Payout Contract. SGX has no obligation or liability in connection with the administration, marketingor trading of the Japan 225 Variable Payout Contract. You are strongly advised to independently verify the accuracy,

248
317083742.2

248taken from four (4) NKFC delivery months: March, June, September, or December(each a “NKFC Delivery Month”). The date on which a new delivery month will be
used as the Underlying for Nadex contracts (i.e. “Start Date”) is one calendar day
after the End Date for the previous delivery month contract. The last day on which
a delivery month will be used as the Underlying for Nadex contracts (i.e. “EndDate”) is the Monday of the week of the Underlying futures contracts Expiration
Date. For example, the SGX Nikkei 225 December 2014 futures have an Expiration
Date of December 11, 2014. The last day on which the Nikkei 225 December 2014
futures prices will be used as the Underlying for Nadex contracts and to calculate
the Expiration Value on the Expiration Date for the relevant Nikkei 225 contracts
will be the Monday of the week of the SGX Nikkei 225 December 2014 futurescontracts Expiration Date (i.e. December 11, 2014). Therefore, the End Date forusing SGX Nikkei 225 December 2014 futures will be December 8, 2014 and theStart Date for the next delivery month, SGX Nikkei 225 March 2015 futures, will be
December 9, 2014.
(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the Japan 225
Variable Payout Contract, the Payout Criteria for the Contracts will be set as
follows:(i)

DAILY JAPAN 225 CALL SPREAD VARIABLE PAYOUT CONTRACTS, 1:25
AM ET74 CLOSE SPREAD – At the commencement of trading in a Daily
Japan 225 Call Spread Variable Payout Contract, referred to as a ‘Call
Spread’, Nadex shall list one (1) Call Spread Contract, which conforms to
the Payout Criteria listed below:(1)

DAILY JAPAN 225 CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 400.

B.

FLOOR – The Floor shall be X – 400.

timeliness and reliability of the Japan 225 Variable Payout Contract and to consult with your investment advisor before
investing. Nadex is not affiliated with Nikkei, Inc. and neither Nikkei, Inc., nor its affiliates, sponsor or endorse Nadex
or its products in any way. In particular, the Nadex Japan 225 Contracts are not sponsored, endorsed, sold or promoted
by Nikkei, Inc.
74 During the period when the US observes daylight savings time, all Variable payout Japan 225 contracts will open andclose 1 hour later than their regular defined times.

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C.
(2)

(ii)

In each case, “X” equals the last NKFC price, as reported by the
Source Agency, rounded to the nearest 100.

DAILY JAPAN 225 NARROW CALL SPREAD CONTRACTS, 1:25 AM ET75
CLOSE – At the commencement of trading in a Daily Japan 225 Narrow
Call Spread Variable Payout Contract, Nadex shall list a set of three (3) Call
Spread Contracts with overlapping ranges which conform to the Payout
Criteria listed below:
(1)

(2)

(iii)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1.

DAILY JAPAN 225 NARROW CALL SPREAD CONTRACTA.

CONTRACT 1: The Ceiling shall be X; The Floor shall be X –
400.

B.

CONTRACT 2; The Ceiling shall be X + 200; The Floor shallbe X – 200.

C.

CONTRACT 3: The Ceiling shall be X + 400; The Floor shall
be X.

D.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1.

In each case, “X” equals the last NKFC price, as reported by the
Source Agency rounded to the nearest 100.

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for Japan 225 Call Spread Contracts
shall be 1.

(g)

POSITION LIMIT – The Position Limits for Japan 225 Call Spread Contracts shallbe 250 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for theJapan 225 Call Spread Variable Payout Contracts for contracted Market Makers
shall be 500 Contracts per strike level.

75 During the period when the US observes daylight savings time, all Variable payout Japan 225 contracts will open andclose 1 hour later than their regular defined times.

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(i)

LAST TRADING DATE – The Last Trading Date of the Contract is the same date as
the Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the Japan 225 Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of Japan 225
calculated by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all NKFC trade prices occurring in theten (10) seconds leading up to the close of trading of the Japan 225 Call Spread
Contract, provided at least twenty-five (25) trade prices are captured during the ten(10) second period, removing the highest twenty (20) percent of NKFC trade prices
and the lowest twenty (20) percent of NKFC trade prices from the data set76, andusing the remaining NKFC trade prices to calculate the Expiration Value. The
calculation used is a simple average of the remaining NKFC trade prices in thedata set, rounded to one decimal point past the precision of the underlying market.
In the event the time it takes to collect at least twenty-five (25) NKFC trade prices
exceeds the ten (10) seconds just prior to the close of trading of the Japan 225
Call Spread Contract, the Expiration Value is calculated by the Source Agency bytaking the last twenty-five (25) NKFC trade prices just prior to the close of tradingof the Japan 225 Call Spread Contract removing the highest five (5) NKFC trade
prices and the lowest five (5) NKFC trade prices, and using the remaining fifteen(15) NKFC trade prices to calculate the Expiration Value. The calculation used is a
simple average of all fifteen (15) NKFC trade prices, rounded to one decimal point
past the precision of the underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
agency, the Settlement Date will be delayed until the Underlying number is released
for the Series.

76 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

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JAPAN 225 BINARY CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the Japan
225 Binary Contracts issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the price of the SGX®
Nikkei 225 Futures contracts (“NKFC”) traded on the Singapore Exchange (SGX)77.
The NKFC trade prices that will be used to calculate the Underlying will be takenfrom four (4) NKFC delivery months: March, June, September, or December (eacha “NKFC Delivery Month”). The date on which a new delivery month will be used as
the Underlying for Nadex contracts (i.e. “Start Date”) is one calendar day after the
End Date for the previous delivery month contract. The last day on which a delivery
month will be used as the Underlying for Nadex contracts (i.e. “End Date”) is the
Monday of the week of the Underlying futures contracts Expiration Date. For
example, the SGX Nikkei 225 December 2014 futures have an Expiration Date ofDecember 11, 2014. The last day on which the Nikkei 225 December 2014 futures
prices will be used as the Underlying for Nadex contracts and to calculate theExpiration Value on the Expiration Date for the relevant Nikkei 225 contracts willbe the Monday of the week of the SGX Nikkei 225 December 2014 futurescontracts Expiration Date (i.e. December 11, 2014). Therefore, the End Date forusing SGX Nikkei 225 December 2014 futures will be December 8, 2014 and theStart Date for the next delivery month, SGX Nikkei 225 March 2015 futures, will be
December 9, 201478.

77 SGX® is a registered service mark of the Singapore Exchange Limited (“SGX”). Nikkei is a registered mark of Nikkei,

Inc. All rights in the Trademarks and Futures Trading Data of SGX vest in Singapore Exchange Limited (“SGX”). The
Japan 225 Binary Contract is not sponsored, endorsed, sold or promoted by SGX. SGX makes no representation or
warranty, express or implied to the investors in the Japan 225 Binary Contract or any member of the public in any
manner whatsoever regarding the advisability of investing in any financial product generally or in particularly the Japan
225 Binary Contract.
The relationship of SGX towards Nadex is in respect of licensing the use of the SGX Nikkei 225 Index Futures Trading
Data. SGX has no obligation to take the needs of the investors of the Japan 225 Binary Contract into consideration in
determining, composing or calculating the SGX Nikkei 225 Index Futures Trading Data. SGX is neither responsible fornor has participated in the structure of the Japan 225 Binary Contract. SGX has no obligation or liability in connection
with the administration, marketing or trading of the Japan 225 Binary Contract. You are strongly advised toindependently verify the accuracy, timeliness and reliability of the Japan 225 Binary Contract and to consult with yourinvestment advisor before investing. Nadex is not affiliated with Nikkei, Inc. and neither Nikkei, Inc., nor its affiliates,
sponsor or endorse Nadex or its products in any way. In particular, the Nadex Japan 225 Contracts are not sponsored,
endorsed, sold or promoted by Nikkei, Inc.
78 Weekly contracts listed on a Monday during a week containing an Underlying futures rollover date will be listed using
the Underlying futures month scheduled to be used to determine the settlement value on the day the contract expires.
For example, the End Date for the SGX Nikkei 225 December 2014 Underlying futures is December 11, 2014. December
11, 2014 is a Thursday, however, and any Nadex weekly contracts listed during this week and expiring on Friday,
December 12, 2014, will be listed using the SGX Nikkei March 2015 futures as its Underlying, as March is the futuresmonth scheduled to be used to determine the Settlement Value of the Nadex weekly contract on its expiration date.

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(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the Japan 225 Binary
Contract, the Payout Criteria for the Contracts will be set as follows:
(i)

(ii)

WEEKLY JAPAN 225 BINARY CONTRACTS(1)

EXPIRATION TIME – 1:25 AM ET CLOSE79(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 200.

(3)

NUMBER OF STRIKE LEVELS LISTED – Thirteen (13) strike levels
will be listed for each Weekly Japan 225 Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “W” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 25
or 75 as reported by the Source Agency. Six (6) strike levels will be
generated above Binary Contract W at an interval of 200, and six (6)strike levels will be generated below Binary Contract W at aninterval of 200 (e.g. W – 200; W; W + 200). The Contract will have a
Payout Criterion of greater than the strike level value.

DAILY JAPAN 225 BINARY CONTRACTS(1)

EXPIRATION TIME – 1:25 AM ET CLOSE80(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 80.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fifteen (15) strike levels will
be listed for each Daily Japan 225 Binary Contract Series.

Therefore, the Start Date for the SGX Nikkei March 2015 futures will be Monday, December 8, 2014 for any Nadex
weekly contracts listed on this date.
79 During the period when the US observes daylight savings time, Weekly Japan 225 Binary Contracts will open andclose 1 hour later than their regular defined times.
80 During the period when the US observes daylight savings time, Daily Japan 225 Binary Contracts will open and close
1 hour later than their regular defined times.

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(4)

(iii)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 10
as reported by the Source Agency. Seven (7) strike levels will be
generated above Binary Contract X at an interval of 80, and seven(7) strike levels will be generated below Binary Contract X at aninterval of 80 (e.g. X – 80; X; X + 80). The Contract will have a Payout
Criterion of greater than the strike level value.

Nadex may list additional Japan 225 Binary Contracts with different ranges
of Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for the Japan 225 Binary Contracts shallbe $0.25.

(g)

POSITION LIMIT – The Position Limits for the Japan 225 Binary Contracts shall be
2,500 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for theJapan 225 Binary Contracts for contracted Market Makers shall be 5,000
Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Expiration Date. Date.

(j)

SETTLEMENT DATE – The Settlement Date in a Series is the same date as the
Expiration(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Japan 225 Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in- the-money Contract on the Settlement Date. The Settlement Value of an inthe-money Japan 225 Binary Contract is $100.

(m)

EXPIRATION VALUE – The Expiration Value is the price or value of Japan 225
calculated by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all NKFC trade prices occurring in theten (10) seconds leading up to the close of trading of the Japan 225 Binary
Contract, provided at least twenty-five (25) trade prices are captured during the ten(10) second period, removing the highest twenty (20) percent of NKFC trade prices
254

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and the lowest twenty (20) percent of NKFC trade prices from the data set81, andusing the remaining NKFC trade prices to calculate the Expiration Value. The
calculation used is a simple average of the remaining NKFC trade prices in thedata set, rounded to one decimal point past the precision of the underlying market.
In the event the time it takes to collect at least twenty-five (25) NKFC trade prices
exceeds the ten (10) seconds just prior to the close of trading of the Japan 225
Binary Contract, the Expiration Value is calculated by the Source Agency by taking
the last twenty-five (25) NKFC trade prices just prior to the close of trading of theJapan 225 Binary Contract removing the highest five (5) NKFC trade prices andthe lowest five (5) NKFC trade prices, and using the remaining fifteen (15) NKFC
trade prices to calculate the Expiration Value. The calculation used is a simple
average of all fifteen (15) NKFC trade prices, rounded to one decimal point past
the precision of the underlying market.
(n)

CONTINGENCIES – If no daily settlement price of the relevant NKFC is announced
by the Source Agency, the Settlement Date will be delayed until such daily
settlement price for that Series is released and publicly available.
– 12.57 [RESERVED]
US 500 VARIABLE PAYOUT CONTRACTS

RULE 12.58.1 US 500 “CALL SPREAD” VARIABLE PAYOUT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the US
500 Call Spread Variable Payout Contracts, referred to as a ‘Call Spread’, issued by
Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the price of the E-mini
S&P 500® Futures contracts (“SPFC”) traded on the Chicago Mercantile
Exchange® (CME®)82. The SPFC trade prices that will be used for the Underlying
will be taken from four (4) SPFC delivery months: March, June, September, or
December (each a “SPFC Delivery Month”). The date on which a new delivery
month will be used as the Underlying for Nadex contracts (i.e. “Start Date”) is one
calendar day after the End Date for the previous delivery month contract. The last

81 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.
82 CME® is a registered mark of the Chicago Mercantile Exchange. S&P 500 is a registered mark of the McGraw-Hill
Companies, Inc. Nadex is not affiliated with the Chicago Mercantile Exchange or the McGraw-Hill Companies andneither the Chicago Mercantile Exchange, the McGraw-Hill Companies, nor its affiliates, sponsor or endorse Nadex or
its products in any way. In particular, the Nadex US 500 Contracts are not sponsored, endorsed, sold or promoted by
CME or the McGraw-Hill Companies.

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day on which a delivery month will be used as the Underlying for Nadex contracts(i.e. “End Date”) is the Friday of the week preceding the Underlying futurescontracts Expiration Date. For example, the CME e-mini S&P 500 March 2012
futures have an Expiration Date of March 16, 2012. The last day on which the emini S&P 500 March 2012 futures prices will be used as the Underlying for Nadex
contracts and to calculate the Expiration Value on the Expiration Date for the
relevant e-mini S&P 500 contracts will be the Friday of the preceding week.
Therefore, the End Date for using CME e-mini S&P 500 March 2012 futures will be
March 9, 2012 and the Start Date for the next delivery month, CME e-mini S&P 500
June 2012 futures, will be March 10, 2012.
(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the US 500 Call
Spreads, the Payout Criteria for the Contracts will be set as follows:(i)

DAILY US 500 CALL SPREAD VARIABLE PAYOUT CONTRACTS, 4:15 PM ET
CLOSE – At the commencement of trading in a Daily US 500 Call Spread,Nadex shall list one (1) Call Spread Contract, which conforms to the Payout
Criteria listed below:
(1)

(2)

(ii)

DAILY US 500 CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 40.

B.

FLOOR – The Floor shall be X – 40.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10.

In each case, “X” equals the last SPFC price, as reported by the
Source Agency, rounded to the nearest 10.

DAILY US 500 CALL SPREAD CONTRACTS, 4:15 PM ET CLOSE - Nadex
shall list a set of three (3) Call Spread Contracts with overlapping ranges,
which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 40.

(2)

CONTRACT 2: The Ceiling shall be X + 20; The Floor shall be X – 20.

(3)

CONTRACT 3: The Ceiling shall be X + 40; The Floor shall be X.
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(iii)(iv)(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10.

(5)

In each case, “X” equals the last SPFC price, as reported by the
Source Agency, rounded to the nearest 10.

INTRADAY US 500 CALL SPREAD CONTRACTS, 8AM ET to 4:15 PM ET
CLOSE – Nadex shall list a set of five (5) Call Spread Contracts withoverlapping ranges, which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X – 15; The Floor shall be X – 45.

(2)

CONTRACT 2: The Ceiling shall be X; The Floor shall be X – 30.

(3)

CONTRACT 3: The Ceiling shall be X + 15; The Floor shall be X – 15.

(4)

CONTRACT 4: The Ceiling shall be X + 30; The Floor shall be X.

(5)

CONTRACT 5: The Ceiling shall be X + 45; The Floor shall be X + 15.

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10.

(7)

In each case, “X” equals the last SPFC price, as reported by the
Source Agency, rounded to the nearest 5.

INTRADAY 2-HOUR US 500 CALL SPREAD CONTRACTS, 10:00AM,
11:00AM, 12:00PM, 1:00PM, 2:00PM, 3:00PM, 4:00PM ET CLOSE – Nadex
shall list a set of five (5) Call Spread Contracts that open 2 hours prior to
the stated closing time(s) above with overlapping ranges, which conformto the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X - 5; The Floor shall be X – 15.

(2)

CONTRACT 2: The Ceiling shall be X; The Floor shall be X – 10.

(3)

CONTRACT 3: The Ceiling shall be X + 5; The Floor shall be X – 5.

(4)

CONTRACT 4: The Ceiling shall be X + 10; The Floor shall be X.

(5)

CONTRACT 5: The Ceiling shall be X + 15; The Floor shall be X + 5.

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10.

(7)

In each case, “X” equals the last SPFC price, as reported by the
Source Agency, rounded to the nearest 5.

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(v)

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for US 500 Call Spread Variable Payout
Contracts shall be 0.1.

(g)

POSITION LIMIT – The Position Limits for US 500 Call Spread Variable Payout
Contracts shall be 250 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the US
500 Call Spread Variable Payout Contracts for contracted Market Makers shall be
500 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date of the Contract is the same date as
the Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the US 500 Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EXPIRATION VALUE – The Expiration Value is the US 500 Index Value ascalculated by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all SPFC trade prices occurring in theten (10) seconds leading up to the close of trading of the US 500 Call Spread
Contract, provided at least twenty-five (25) trade prices are captured during the ten(10) second period, removing the highest twenty (20) percent of SPFC trade prices
and the lowest twenty (20) percent of SPFC trade prices from the data set83, andusing the remaining SPFC trade prices to calculate the Expiration Value. The
calculation used is a simple average of the remaining SPFC trade prices in the dataset, rounded to one decimal point past the precision of the underlying market. In
the event the time it takes to collect at least twenty-five (25) SPFC trade prices
exceeds the ten (10) seconds just prior to the close of trading of the US 500 Call

83 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

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Spread Contract, the Expiration Value is calculated by the Source Agency by taking
the last twenty-five (25) SPFC trade prices just prior to the close of trading of the
US 500 Call Spread Contract removing the highest five (5) SPFC trade prices andthe lowest five (5) SPFC trade prices, and using the remaining fifteen (15) SPFC
trade prices to calculate the Expiration Value. The calculation used is a simple
average of all fifteen (15) SPFC trade prices, rounded to one decimal point past
the precision of the underlying market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
agency, the Settlement Date will be delayed until the Underlying number is released
for the Series.

RULE 12.58.2 US 500 “TOUCH BRACKET” VARIABLE PAYOUT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the US
500 Touch Bracket Variable Payout Contracts, referred to as a ‘Touch Bracket’,issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the price of the E-mini
S&P 500® Futures contracts (“SPFC”) traded on the Chicago Mercantile
Exchange® (CME®)84. The SPFC trade prices that will be used for the Underlying
will be taken from four (4) SPFC delivery months: March, June, September, or
December (each a “SPFC Delivery Month”). The date on which a new delivery
month will be used as the Underlying for Nadex contracts (i.e. “Start Date”) is one
calendar day after the End Date for the previous delivery month contract. The last
day on which a delivery month will be used as the Underlying for Nadex contracts(i.e. “End Date”) is the Friday of the week preceding the Underlying futurescontracts Expiration Date. For example, the CME e-mini S&P 500 March 2012
futures have an Expiration Date of March 16, 2012. The last day on which the emini S&P 500 March 2012 futures prices will be used as the Underlying for Nadex
contracts and to calculate the Expiration Value on the Expiration Date for the
relevant e-mini S&P 500 contracts will be the Friday of the preceding week.
Therefore, the End Date for using CME e-mini S&P 500 March 2012 futures will be
March 9, 2012 and the Start Date for the next delivery month, CME e-mini S&P 500
June 2012 futures, will be March 10, 2012.

84 CME® is a registered mark of the Chicago Mercantile Exchange. S&P 500 is a registered mark of the McGraw-Hill

Companies, Inc. Nadex is not affiliated with the Chicago Mercantile Exchange or the McGraw-Hill Companies andneither the Chicago Mercantile Exchange, the McGraw-Hill Companies, nor its affiliates, sponsor or endorse Nadex or
its products in any way. In particular, the Nadex US 500 Contracts are not sponsored, endorsed, sold or promoted by
CME or the McGraw-Hill Companies.

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(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the US 500 Touch
Bracket Contracts, the Payout Criteria for the Contracts will be set as follows:
(i)

(ii)

WEEKLY US 500 TOUCH BRACKET VARIABLE PAYOUT CONTRACTS, Close
Time is the earlier of 4:15PM ET on the last Trade Day of the contract
listing, or when the US 500 Index Value is equal to or greater than the
Ceiling, or equal to or less than the Floor. Nadex shall list a set of four (4)Touch Bracket Variable Payout Contracts, referred to as a ‘Touch Bracket’,that open at 3:00AM ET on the first Trade Day of the week, with overlapping
ranges, which conform to the Payout Criteria listed below.
(1)

CONTRACT 1: The Ceiling shall be X + 40; The Floor shall be X – 10.

(2)

CONTRACT 2: The Ceiling shall be X + 30; The Floor shall be X – 20.

(3)

CONTRACT 3: The Ceiling shall be X + 20; The Floor shall be X – 30.

(4)

CONTRACT 4: The Ceiling shall be X + 10; The Floor shall be X – 40.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10.

(6)

In each case, “X” equals the last US 500 price, as reported by the
Source Agency, rounded to the nearest 1.

Upon the early Expiration of a , Nadex may list a new with a Ceiling of X +40 (or 10) and a Floor of X – 10 (or 40) where X equals the Ceiling (or Floor)of the that expired early. The newly listed will have the same Last Trade
Day as originally established for the expired Touch Bracket and the same
Dollar Multiplier as the expired Touch Bracket.

(f)

MINIMUM TICK – The Minimum Tick size for US 500 Touch Bracket Variable
Payout Contracts shall be 0.1.

(g)

POSITION LIMIT – The Position Limit for US 500 Touch Bracket Variable Payout
Contracts shall be 100 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the US
500 Touch Bracket Variable Payout Contracts for contracted Market Makers shallbe 100,000 Contracts per strike level.
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(i)

LAST TRADING DATE – The Last Trading Date of the Contract is the same date as
the Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the US 500 Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

US 500 INDEX VALUE – The Source Agency shall calculate and produce a US 500
Index Value once each second throughout the life of the US 500 Variable Payout
contracts. That is, each second the Source Agency will calculate a US 500 Index
Value by taking by taking all SPFC trade prices occurring in the ten (10) seconds
leading up to the Calculation Time, provided at least twenty-five (25) trade prices
are captured during the ten (10) second period, removing the highest twenty (20)percent of SPFC trade prices and the lowest twenty (20) percent of SPFC trade
prices from the data set85, and using the remaining SPFC trade prices to calculate
the US 500 Index Value for that second. The calculation used is a simple averageof the remaining SPFC trade prices in the data set, rounded to one decimal point
past the precision of the underlying market. In the event the time it takes to collectat least twenty-five (25) SPFC trade prices exceeds the ten (10) second period, theUS 500 Index Value will be calculated by the Source Agency by taking the lasttwenty-five (25) SPFC trade prices just prior to the Calculation Time, removing thehighest five (5) SPFC trade prices and the lowest five (5) SPFC trade prices, andusing the remaining fifteen (15) SPFC trade prices to calculate the US 500 Index
Value. The calculation used is a simple average of all fifteen (15) SPFC trade
prices, rounded to one decimal point past the precision of the underlying market.

(n)

EXPIRATION VALUE – The Expiration Value is the US 500 Index Value released by
the Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source

85 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

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261agency, the Settlement Date will be delayed until the Underlying number is released
for the Series.
US 500 BINARY CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the US
500 Binary Contracts issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Binary Contracts is the price of
the E-mini S&P 500® Futures contracts (“SPFC”) traded on the Chicago Mercantile
Exchange® (CME®)86. The SPFC trade prices that will be used to calculate theUnderlying will be taken from four (4) SPFC delivery months: March, June,
September, or December (each a “SPFC Delivery Month”). The date on which a newdelivery month will be used as the Underlying for Nadex contracts (i.e. “Start Date”)
is one calendar day after the End Date for the previous delivery month contract.
The last day on which a delivery month will be used as the Underlying for Nadex
contracts (i.e. “End Date”) is the Friday of the week preceding the Underlying
futures contracts Expiration Date. For example, the CME e-mini S&P 500 March2012 futures have an Expiration Date of March 16, 2012. The last day on which thee-mini S&P 500 March 2012 futures prices will be used as the Underlying for Nadex
contracts and to calculate the Expiration Value on the Expiration Date for the
relevant e-mini S&P 500 contracts will be the Friday of the preceding week.
Therefore, the End Date for using CME e-mini S&P 500 March 2012 futures will be
March 9, 2012 and the Start Date for the next delivery month, CME e-mini S&P 500
June 2012 futures, will be March 10, 2012.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the US 500Binary Contract,
the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY US 500 BINARY CONTRACTS(1)

EXPIRATION TIME – 4:15PM ET CLOSE

86 CME® is a registered mark of the Chicago Mercantile Exchange. S&P 500 is a registered mark of the McGraw-Hill

Companies, Inc. Nadex is not affiliated with the Chicago Mercantile Exchange or the McGraw-Hill Companies andneither the Chicago Mercantile Exchange, the McGraw-Hill Companies, nor its affiliates, sponsor or endorse Nadex or
its products in any way. In particular, the Nadex US 500 Contracts are not sponsored, endorsed, sold or promoted by
CME or the McGraw-Hill Companies.

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(ii)

(iii)

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 24.

(3)

NUMBER OF STRIKE LEVELS LISTED – Thirteen (13) strike levels
will be listed for the Weekly US 500 Binary Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Binary Contract “W” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in .50.
Six (6) strike levels will be generated above Binary Contract W at aninterval of 24, and six (6) strike levels will be generated below Binary
Contract W at an interval of 24 (e.g. W – 24; W; W + 24). The
Contract will have a Payout Criterion of greater than the strike levelvalue.

DAILY US 500 BINARY CONTRACTS(1)

EXPIRATION TIME – 4:15PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 12.

(3)

NUMBER OF STRIKE LEVELS LISTED – Twenty-one (21) strikelevels will be listed for the Daily US 500 Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest one (1). Ten (10)strike levels will be generated above Binary Contract X at an intervalof 6, and ten (10) strike levels will be generated below Binary
Contract X at an interval of 6 (e.g. X – 6; X; X + 6). The Contract will
have a Payout Criterion of greater than the strike level value.

INTRADAY US 500 2-HOUR BINARY CONTRACTS(1)

EXPIRATION TIME – 10:00AM, 11:00AM, 12:00PM, 1:00PM,
2:00PM, 3:00PM, 4:00PM, 5:00PM ET CLOSE (5:00PM only Monday– Thursday)

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(iv)

(v)

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 3.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fifteen (15) strike levels will
be listed for each Intraday US 500 2-Hour Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in .10.
Seven (7) strike levels will be generated above Binary Contract Y atan interval of 3, and seven (7) strike levels will be generated below
Binary Contract Y at an interval of 3 (e.g. Y – 3; Y; Y + 3). The
Contract will have a Payout Criterion of greater than the strike levelvalue.

INTRADAY US 500 20-MINUTE BINARY CONTRACTS(1)

EXPIRATION TIME – 10:00AM, 10:20AM, 10:40AM, 11:00AM,
11:20AM, 2:40PM, 3:00PM, 3:20PM, 3:40PM 4:00PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 1.5.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fifteen (15) strike levels will
be listed for each Intraday US 500 20-Minute Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in .05.
Seven (7) strike levels will be generated above Binary Contract Z at
an interval of 1.5, and seven (7) strike levels will be generated below
Binary Contract Z at an interval of 1.5 (e.g. Z – 1.5; Z; Z + 1.5). The
Contract will have a Payout Criterion of greater than the strike levelvalue.

INTRADAY US 500 20-MINUTE BINARY CONTRACTS(1)

EXPIRATION TIME – 11:40AM, 12:00PM, 12:20PM, 12:40PM,
1:00PM, 1:20PM, 1:40PM, 2:00PM, 2:20PM ET CLOSE
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(vi)

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 1.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fifteen (15) strike levels will
be listed for each Intraday US 500 20-Minute Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in .05.
Seven (7) strike levels will be generated above Binary Contract Z at
an interval of 1, and seven (7) strike levels will be generated below
Binary Contract Z at an interval of 1 (e.g. Z – 1; Z; Z + 1). The
Contract will have a Payout Criterion of greater than the strike levelvalue.

Nadex may list additional US 500 Binary Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for the US 500 Binary Contracts shall be$0.25.

(g)

POSITION LIMIT – The Position Limits for the US 500 Binary Contracts shall be
2,500 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the US
500 Binary Contracts for contracted Market Makers shall be 5,000 Contracts per
strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Expiration Date. Date.

(j)

SETTLEMENT DATE – The Settlement Date in a Series is the same date as the
Expiration(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the 500 Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in- the-money Contract on the Settlement Date. The Settlement Value of an inthe-money US 500 Binary Contract is $100.

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(m)

EXPIRATION VALUE – The Expiration Value is the price or value of US 500 as
calculated by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all SPFC trade prices occurring in theten (10) seconds leading up to the close of trading of the US 500 Binary Contract,provided at least twenty-five (25) trade prices are captured during the ten (10)second period, removing the highest twenty (20) percent of SPFC trade prices andthe lowest twenty (20) percent of SPFC trade prices from the data set87, and using
the remaining SPFC trade prices to calculate the Expiration Value. The calculation
used is a simple average of the remaining SPFC trade prices in the data set,rounded to one decimal point past the precision of the underlying market. In theevent the time it takes to collect at least twenty-five (25) SPFC trade prices
exceeds the ten (10) seconds just prior to the close of trading of the US 500 Binary
Contract, the Expiration Value is calculated by the Source Agency by taking the lasttwenty-five (25) SPFC trade prices just prior to the close of trading of the US 500
Binary Contract removing the highest five (5) SPFC trade prices and the lowest five(5) SPFC trade prices, and using the remaining fifteen (15) SPFC trade prices tocalculate the Expiration Value. The calculation used is a simple average of all
fifteen (15) SPFC trade prices, rounded to one decimal point past the precision of
the underlying market.

(n)

CONTINGENCIES – If no daily settlement price of the relevant SPFC is announced
by the Source Agency, the Settlement Date will be delayed until such daily
settlement price for that Series is released and publicly available.
US SMALLCAP 2000 VARIABLE PAYOUT CONTRACTS

RULE 12.60.1 US SMALLCAP 2000 “CALL SPREAD” VARIABLE PAYOUT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the US
SmallCap 2000 Call Spread Variable Payout Contracts, referred to as a ‘Call
Spread’, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the price of the E-mini
Russell 2000®88 Index Futures contracts (“RUFC”) traded on the Chicago
Mercantile Exchange (CME®)89. The RUFC trade prices that will be used for theUnderlying will be taken from four (4) RUFC delivery months: March, June,

87 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.
88 Russell 2000® is a registered mark of Frank Russell Company.
89 CME® is a registered mark of the Chicago Mercantile Exchange. Nadex is not affiliated with the Chicago Mercantile
Exchange (“CME”), nor its affiliates, and CME does not sponsor or endorse Nadex or its products in any way. In
particular, the Nadex US SmallCap 2000 Contracts are not sponsored, endorsed, sold or promoted by CME.

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September, or December (each a “RUFC Delivery Month”). The date on which a newdelivery month will be used as the Underlying for Nadex contracts (i.e. “Start Date”)
is one calendar day after the End Date for the previous delivery month contract.
The last day on which a delivery month will be used as the Underlying for Nadex
contracts (i.e. “End Date”) is the Friday of the week preceding the Underlying
futures contracts Expiration Date. For example, the CME E-mini Russell 2000 Index
September 2017 Futures has an Expiration Date of September 15, 2017. The last
day on which the CME E-mini Russell 2000 Index September 2017 Futures prices
will be used as the Underlying for Nadex contracts and to calculate the Expiration
Value on the Expiration Date for the relevant CME E-mini Russell 2000 Index
Futures contracts will be the Friday of the preceding week. Therefore, the End Datefor using CME E-mini Russell 2000 Index September 2017 Futures will be
September 8, 2017 and the Start Date for the next delivery month, CME E-mini
Russell 2000 Index December 2017 Futures, will be September 9, 2017.
(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the US SmallCap
2000 Call Spread Contract, the Payout Criteria for the Contracts will be set as
follows:(i)

DAILY US SMALLCAP 2000 CALL SPREAD VARIABLE PAYOUT
CONTRACTS, 4:15 PM ET CLOSE - At the commencement of trading in a
Daily US SmallCap 2000 Call Spread, Nadex shall list one (1) Call Spread
Contract, which conforms to the Payout Criteria listed below:
(1)

(2)

(ii)

A.

CEILING – The Ceiling shall be X + 30.

B.

FLOOR – The Floor shall be X – 30.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10.

In each case, “X” equals the last RUFC price, as reported by the
Source Agency, rounded to the nearest 5.

DAILY US SMALLCAP 2000 CALL SPREAD CONTRACTS, 4:15 PM ET
CLOSE – Nadex shall list a set of three (3) Call Spread Contracts withoverlapping ranges, which conform to the Payout Criteria listed below:(1)317083742.2

DAILY US SMALLCAP 2000 CALL SPREAD CONTRACTCONTRACT 1: The Ceiling shall be X; The Floor shall be X – 30.
267
267

(iii)(iv)(2)

CONTRACT 2: The Ceiling shall be X + 15; The Floor shall be X – 15.

(3)

CONTRACT 3: The Ceiling shall be X + 30; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10.

(5)

In each case, “X” equals the last RUFC price, as reported by the
Source Agency, rounded to the nearest 5.

INTRADAY US SMALLCAP 2000 CALL SPREAD CONTRACTS, 8AM ET to
4:15 PM ET CLOSE – Nadex shall list a set of five (5) Call Spread Contracts
with overlapping ranges, which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X – 10; The Floor shall be X – 30.

(2)

CONTRACT 2: The Ceiling shall be X; The Floor shall be X – 20.

(3)

CONTRACT 3: The Ceiling shall be X + 10; The Floor shall be X – 10.

(4)

CONTRACT 4: The Ceiling shall be X + 20; The Floor shall be X.

(5)

CONTRACT 5: The Ceiling shall be X + 30; The Floor shall be X + 10.

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10.

(7)

In each case, “X” equals the last RUFC price, as reported by the
Source Agency, rounded to the nearest 5.

INTRADAY 2-HOUR US SMALLCAP 2000 CALL SPREAD CONTRACTS,
10:00AM, 11:00AM, 12:00PM, 1:00PM, 2:00PM, 3:00PM, 4:00PM ET CLOSE– Nadex shall list a set of five (5) Call Spread Contracts that open 2 hours
prior to the stated closing time(s) above with overlapping ranges, which
conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X – 3.5; The Floor shall be X –
10.5.

(2)

CONTRACT 2: The Ceiling shall be X; The Floor shall be X – 7.

(3)

CONTRACT 3: The Ceiling shall be X + 3.5; The Floor shall be X –
3.5.

(4)

CONTRACT 4: The Ceiling shall be X + 7; The Floor shall be X.

(5)

CONTRACT 5: The Ceiling shall be X + 10.5; The Floor shall be X +
3.5.
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(v)

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10.

(7)

In each case, “X” equals the last RUFC price, as reported by the
Source Agency, rounded to the nearest 1.

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for US SmallCap 2000 Call Spread
Variable Payout Contracts shall be 0.1.

(g)

POSITION LIMIT – The Position Limits for US SmallCap 2000 Call Spread Variable
Payout Contracts shall be 250 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the US
SmallCap 2000 Call Spread Variable Payout Contracts for contracted Market
Makers shall be 500 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date of the Contract is the same date as
the Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the US SmallCap 2000 Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EXPIRATION VALUE – The Expiration Value is the US SmallCap 2000 Index Valueas calculated by the Source Agency on the Expiration Date. The Expiration Valueis calculated by the Source Agency by taking all RUFC trade prices occurring in theten (10) seconds leading up to the close of trading of the US SmallCap 2000 Call
Spread Contract, provided at least twenty-five (25) trade prices are captured during
the ten (10) second period, removing the highest twenty (20) percent of RUFC trade
prices and the lowest twenty (20) percent of RUFC trade prices from the data set90,

90 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

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and using the remaining RUFC trade prices to calculate the Expiration Value. The
calculation used is a simple average of the remaining RUFC trade prices in the dataset, rounded to one decimal point past the precision of the underlying market. In
the event the time it takes to collect at least twenty-five (25) RUFC trade prices
exceeds the ten (10) seconds just prior to the close of trading of the US SmallCap
2000 Call Spread Contract, the Expiration Value is calculated by the Source Agency
by taking the last twenty-five (25) RUFC trade prices just prior to the close of
trading of the US SmallCap 2000 Call Spread Contract removing the highest five(5) RUFC trade prices and the lowest five (5) RUFC trade prices, and using theremaining fifteen (15) RUFC trade prices to calculate the Expiration Value. The
calculation used is a simple average of all fifteen (15) RUFC trade prices, rounded
to one decimal point past the precision of the underlying market.
(n)

CONTINGENCIES – If no daily settlement price of the relevant RUFC is announced
by the Source Agency, the Settlement Date will be delayed until such daily
settlement price for that Series is released and publicly available.

RULE 12.60.2 US SMALLCAP 2000 “TOUCH BRACKET” VARIABLE PAYOUT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the US
SmallCap 2000 Touch Bracket Variable Payout Contracts, referred to as a ‘Touch
Bracket’, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the price of the E-mini
Russell 2000®91 Index Futures contracts (“RUFC”) traded on the Chicago
Mercantile Exchange (CME®)92. The RUFC trade prices that will be used for theUnderlying will be taken from four (4) RUFC delivery months: March, June,
September, or December (each a “RUFC Delivery Month”). The date on which a newdelivery month will be used as the Underlying for Nadex contracts (i.e. “Start Date”)
is one calendar day after the End Date for the previous delivery month contract.
The last day on which a delivery month will be used as the Underlying for Nadex
contracts (i.e. “End Date”) is the Friday of the week preceding the Underlying
futures contracts Expiration Date. For example, the CME E-mini Russell 2000 Index
September 2017 Futures has an Expiration Date of September 15, 2017. The last
day on which the CME E-mini Russell 2000 Index September 2017 Futures prices
will be used as the Underlying for Nadex contracts and to calculate the Expiration
Value on the Expiration Date for the relevant CME E-mini Russell 2000 Index
Futures contracts will be the Friday of the preceding week. Therefore, the End Datefor using CME E-mini Russell 2000 Index September 2017 Futures will be

91 Russell 2000® is a registered mark of Frank Russell Company.
92 CME® is a registered mark of the Chicago Mercantile Exchange. Nadex is not affiliated with the Chicago Mercantile

Exchange (“CME”), nor its affiliates, and CME does not sponsor or endorse Nadex or its products in any way. In
particular, the Nadex US SmallCap 2000 Contracts are not sponsored, endorsed, sold or promoted by CME.

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270September 8, 2017 and the Start Date for the next delivery month, CME E-mini
Russell 2000 Index December 2017 Futures, will be September 9, 2017.
(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the US SmallCap
2000 Touch Bracket Contracts, the Payout Criteria for the Contracts will be set as
follows:
(i)

(ii)

(f)

WEEKLY US SMALLCAP 2000 TOUCH BRACKET VARIABLE PAYOUT
CONTRACTS, Close Time is the earlier of 4:15PM ET on the last Trade Dayof the contract listing, or when the US SmallCap 2000 Index Value is equal
to or greater than the Ceiling, or equal to or less than the Floor. Nadex shalllist a set of four (4) Touch Bracket Variable Payout Contracts, referred toas a ‘Touch Bracket’, that open at 3:00AM ET on the first Trade Day of theweek, with overlapping ranges, which conform to the Payout Criteria listed
below.
(1)

CONTRACT 1: The Ceiling shall be X + 40; The Floor shall be X – 10.

(2)

CONTRACT 2: The Ceiling shall be X + 30; The Floor shall be X – 20.

(3)

CONTRACT 3: The Ceiling shall be X + 20; The Floor shall be X – 30.

(4)

CONTRACT 4: The Ceiling shall be X + 10; The Floor shall be X – 40.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10.

(6)

In each case, “X” equals the last US SmallCap 2000 price, asreported by the Source Agency, rounded to the nearest 1.

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 40 (or 10) and a Floor of X – 10 (or 40) where
X equals the Ceiling (or Floor) of the Touch Bracket that expired early. The
newly listed Touch Bracket will have the same Last Trade Day as originallyestablished for the expired Touch Bracket and the same Dollar Multiplieras the expired Touch Bracket.

MINIMUM TICK – The Minimum Tick size for US SmallCap 2000 Touch Bracket
Variable Payout Contracts shall be 0.1.

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(g)

POSITION LIMIT – The Position Limit for US SmallCap 2000 Touch Bracket
Variable Payout Contracts shall be 100 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the US
SmallCap 2000 Touch Bracket Variable Payout Contracts for contracted Market
Makers shall be 100,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date of the Contract is the same date as
the Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the US SmallCap 2000 Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

US SMALLCAP 2000 INDEX VALUE – The Source Agency shall calculate andproduce a US SmallCap 2000 Index Value once each second throughout the life of
the US SmallCap 2000 Variable Payout contracts. That is, each second the Source
Agency will calculate a US SmallCap 2000 Index Value by taking by taking all RUFC
trade prices occurring in the ten (10) seconds leading up to the Calculation Time,provided at least twenty-five (25) trade prices are captured during the ten (10)second period, removing the highest twenty (20) percent of RUFC trade prices andthe lowest twenty (20) percent of RUFC trade prices from the data set93, and using
the remaining RUFC trade prices to calculate the US SmallCap 2000 Index Valuefor that second. The calculation used is a simple average of the remaining RUFC
trade prices in the data set, rounded to one decimal point past the precision of theunderlying market. In the event the time it takes to collect at least twenty-five (25)
RUFC trade prices exceeds the ten (10) second period, the US SmallCap 2000
Index Value will be calculated by the Source Agency by taking the last twenty-five(25) RUFC trade prices just prior to the Calculation Time, removing the highest five(5) RUFC trade prices and the lowest five (5) RUFC trade prices, and using theremaining fifteen (15) RUFC trade prices to calculate the US SmallCap 2000 Index

93 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

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prices, rounded to one decimal point past the precision of the underlying market.
(n)

EXPIRATION VALUE – The Expiration Value is the US SmallCap 2000 Index Valueas released by the Source Agency at Expiration(o)

CONTINGENCIES – If no daily settlement price of the relevant RUFC is announced
by the Source Agency, the Settlement Date will be delayed until such daily
settlement price for that Series is released and publicly available.
US SMALLCAP 2000 BINARY CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the US
SmallCap 2000 Binary Contracts issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the price of the E-mini
Russell 2000®94 Index Futures contracts (“RUFC”) traded on the Chicago
Mercantile Exchange (CME®)95. The RUFC trade prices that will be used for theUnderlying will be taken from four (4) RUFC delivery months: March, June,
September, or December (each a “RUFC Delivery Month”). The date on which a newdelivery month will be used as the Underlying for Nadex contracts (i.e. “Start Date”)
is one calendar day after the End Date for the previous delivery month contract.
The last day on which a delivery month will be used as the Underlying for Nadex
contracts (i.e. “End Date”) is the Friday of the week preceding the Underlying
futures contracts Expiration Date. For example, the CME E-mini Russell 2000 Index
September 2017 Futures has an Expiration Date of September 15, 2017. The last
day on which the CME E-mini Russell 2000 Index September 2017 Futures prices
will be used as the Underlying for Nadex contracts and to calculate the Expiration
Value on the Expiration Date for the relevant CME E-mini Russell 2000 Index
Futures contracts will be the Friday of the preceding week. Therefore, the End Datefor using CME E-mini Russell 2000 Index September 2017 Futures will be
September 8, 2017 and the Start Date for the next delivery month, CME E-mini
Russell 2000 Index December 2017 Futures, will be September 9, 2017.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Binary Contract.

94 Russell 2000® is a registered mark of Frank Russell Company.
95 CME® is a registered mark of the Chicago Mercantile Exchange. Nadex is not affiliated with the Chicago Mercantile

Exchange (“CME”), nor its affiliates, and CME does not sponsor or endorse Nadex or its products in any way. In
particular, the Nadex US SmallCap 2000 Contracts are not sponsored, endorsed, sold or promoted by CME.

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(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the US SmallCap 2000
Binary Contract, the Payout Criteria for the Contracts will be set as follows:
(i)

(ii)

WEEKLY US SMALLCAP 2000 BINARY CONTRACTS(1)

EXPIRATION TIME – 4:15PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 24.

(3)

NUMBER OF STRIKE LEVELS LISTED – Thirteen (13) strike levels
will be listed for the Weekly US SmallCap 2000 Binary Contract
Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “W” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest one (1). Six (6) strikelevels will be generated above Binary Contract W at an interval of24, and six (6) strike levels will be generated below Binary Contract
W at an interval of 24 (e.g. W – 24; W; W + 24). The Contract will
have a Payout Criterion of greater than the strike level value.

DAILY US SMALLCAP 2000 BINARY CONTRACTS(1)

EXPIRATION TIME – 4:15PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 8.

(3)

NUMBER OF STRIKE LEVELS LISTED – Twenty-one (21) strikelevels will be listed for the Daily US SmallCap 2000 Binary Contract
Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest one (1). Ten (10)strike levels will be generated above Binary Contract X at an intervalof 4, and ten (10) strike levels will be generated below Binary274
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Contract X at an interval of 4 (e.g. X – 4; X; X + 4). The Contract will
have a Payout Criterion of greater than the strike level value.
(iii)

(iv)

INTRADAY US SMALLCAP 2000 2-HOUR BINARY CONTRACTS(1)

EXPIRATION TIME – 10:00AM, 11:00AM, 12:00PM, 1:00PM,
2:00PM, 3:00PM, 4:00PM, 5:00PM ET CLOSE (5:00PM only Monday– Thursday)(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 2.8.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fifteen (15) strike levels will
be listed for each Intraday US SmallCap 2000 2-Hour Binary
Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in .10.
Seven (7) strike levels will be generated above Binary Contract Y atan interval of 2.8, and seven (7) strike levels will be generated below
Binary Contract Y at an interval of 2.8 (e.g. Y – 2.8; Y; Y + 2.8). The
Contract will have a Payout Criterion of greater than the strike levelvalue.

INTRADAY US SMALLCAP 2000 20-MINUTE BINARY CONTRACTS(1)

EXPIRATION TIME – 10:00AM, 10:20AM, 10:40AM, 11:00AM,
11:20AM, 2:40PM, 3:00PM, 3:20PM, 3:40PM 4:00PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 1.4.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fifteen (15) strike levels will
be listed for each Intraday US SmallCap 2000 20-Minute Binary
Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in .10.
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275Seven (7) strike levels will be generated above Binary Contract Z at
an interval of 1.4, and seven (7) strike levels will be generated below
Binary Contract Z at an interval of 1.4 (e.g. Z – 1.4; Z; Z + 1.4). The
Contract will have a Payout Criterion of greater than the strike levelvalue.
(v)(vi)

INTRADAY US SMALLCAP 2000 20-MINUTE BINARY CONTRACTS(1)

EXPIRATION TIME – 11:40AM, 12:00PM, 12:20PM, 12:40PM,
1:00PM, 1:20PM, 1:40PM, 2:00PM, 2:20PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 1.2.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fifteen (15) strike levels will
be listed for each Intraday US SmallCap 2000 20-Minute Binary
Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in .10.
Seven (7) strike levels will be generated above Binary Contract Z at
an interval of 1.2, and seven (7) strike levels will be generated below
Binary Contract Z at an interval of 1.2 (e.g. Z – 1.2; Z; Z + 1.2). The
Contract will have a Payout Criterion of greater than the strike levelvalue.

Nadex may list additional US SmallCap 2000 Binary Contracts withdifferent ranges of Payout Criteria on a discretionary basis in accordancewith the CEA and Commission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for the US SmallCap 2000 Binary
Contracts shall be $0.25.

(g)

POSITION LIMIT – The Position Limits for the US SmallCap 2000 Binary Contracts
shall be 2,500 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the US
SmallCap 2000 Binary Contracts for contracted Market Makers shall be 5,000
Contracts per strike level.

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(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Expiration Date. Date.

(j)

SETTLEMENT DATE – The Settlement Date in a Series is the same date as the
Expiration(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the 500 Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in- the-money Contract on the Settlement Date. The Settlement Value of an inthe-money US SmallCap 2000 Binary Contract is $100.

(m)

EXPIRATION VALUE – The Expiration Value is the level of US SmallCap 2000 as
calculated by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all RUFC trade prices occurring in theten (10) seconds leading up to the close of trading of the US SmallCap 2000 Binary
Contract, provided at least twenty-five (25) trade prices are captured during the ten(10) second period, removing the highest twenty (20) percent of RUFC trade prices
and the lowest twenty (20) percent of RUFC trade prices from the data set96, andusing the remaining RUFC trade prices to calculate the Expiration Value. The
calculation used is a simple average of the remaining RUFC trade prices in the dataset, rounded to one decimal point past the precision of the underlying market. In
the event the time it takes to collect at least twenty-five (25) RUFC trade prices
exceeds the ten (10) seconds just prior to the close of trading of the US SmallCap
2000 Binary Contract, the Expiration Value is calculated by the Source Agency bytaking the last twenty-five (25) RUFC trade prices just prior to the close of tradingof the US SmallCap 2000 Binary Contract removing the highest five (5) RUFC trade
prices and the lowest five (5) RUFC trade prices, and using the remaining fifteen(15) RUFC trade prices to calculate the Expiration Value. The calculation used is a
simple average of all fifteen (15) RUFC trade prices, rounded to one decimal point
past the precision of the underlying market.

(n)

CONTINGENCIES – If no daily settlement price of the relevant RUFC is announced
by the Source Agency, the Settlement Date will be delayed until such daily
settlement price for that Series is released and publicly available.
US TECH 100 VARIABLE PAYOUT CONTRACTS

96 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

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RULE 12.62.1 US TECH 100 “CALL SPREAD” VARIABLE PAYOUT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the US
Tech 100 Call Spread Variable Payout Contracts, referred to as a ‘Call Spread’,issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the price of the E-mini
NASDAQ 100® Futures contracts (“NQFC”) traded on the Chicago Mercantile
Exchange (CME®)97. The NQFC trade prices that will be used to calculate theUnderlying will be taken from four (4) NQFC delivery months: March, June,
September, or December (each a “NQFC Delivery Month”). The date on which a
new delivery month will be used as the Underlying for Nadex contracts (i.e. “Start
Date”) is one calendar day after the End Date for the previous delivery monthcontract. The last day on which a delivery month will be used as the Underlying for
Nadex contracts (i.e. “End Date”) is the Friday of the week preceding the Underlying
futures contracts Expiration Date. For example, the CME e-mini NASDAQ 100
March 2012 futures have an Expiration Date of March 16, 2012. The last day on
which the e-mini NASDAQ 100 March 2012 futures prices will be used as theUnderlying for Nadex contracts and to calculate the Expiration Value on the
Expiration Date for the relevant e-mini NASDAQ 100 contracts will be the Friday ofthe preceding week. Therefore, the End Date for using CME e-mini NASDAQ 100
March 2012 futures will be March 9, 2012 and the Start Date for the next delivery
month, CME e-mini NASDAQ 100 June 2012 futures, will be March 10, 2012.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the US Tech 100
Call Spreads, the Payout Criteria for the Contracts will be set as follows:(i)

DAILY US TECH 100 CALL SPREAD VARIABLE PAYOUT CONTRACTS, 4:15
PM ET CLOSE – At the commencement of trading in a Daily Spread US
Tech 100 nor its affiliates, sponsor or endorse Nadex or its products in any
way. In particular, the Nadex US Tech 100 Contracts are not sponsored,
endorsed, sold or promoted by CME or the Nasdaq Stock Market. Call
Spread, Nadex shall list one (1) Call Spread Contract, which conforms to
the Payout Criteria listed below:

97 CME® is a registered mark of the Chicago Mercantile Exchange. NASDAQ-100 are registered marks of the Nasdaq

Stock Market, Inc. Nadex is not affiliated with the Chicago Mercantile Exchange or Nasdaq Stock Market and neither
the Chicago Mercantile Exchange, the Nasdaq Market,

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(1)

(2)

(ii)

(iii)

DAILY US TECH 100 CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 100

B.

FLOOR – The Floor shall be X – 100.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 4.

In each case, “X” equals the last NQFC price, as reported by the
Source Agency, rounded to the nearest 10.

DAILY US TECH 100 CALL SPREAD CONTRACTS, 4:15 PM ET CLOSE –Nadex shall list a set of three (3) Call Spread Contracts with overlapping
ranges, which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 100.

(2)

CONTRACT 2: The Ceiling shall be X + 50; The Floor shall be X – 50.

(3)

CONTRACT 3: The Ceiling shall be X + 100; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 4.

(5)

In each case, “X” equals the last NQFC price, as reported by the
Source Agency, rounded to the nearest 10.

INTRADAY US TECH 100 CALL SPREAD CONTRACTS, 8AM ET to 4:15 PM
ET CLOSE – Nadex shall list a set of five (5) Call Spread Contracts withoverlapping ranges, which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X – 45; The Floor shall be X –
135.

(2)

CONTRACT 2: The Ceiling shall be X; The Floor shall be X – 90.

(3)

CONTRACT 3: The Ceiling shall be X + 45; The Floor shall be X – 45.

(4)

CONTRACT 4: The Ceiling shall be X + 90; The Floor shall be X.

(5)

CONTRACT 5: The Ceiling shall be X + 135; The Floor shall be X +
45.

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 4.

(7)

In each case, “X” equals the last NQFC price, as reported by the
Source Agency, rounded to the nearest 10.
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(iv)

(v)

INTRADAY 2-HOUR US TECH 100 CALL SPREAD CONTRACTS, 10:00AM,
11:00AM, 12:00PM, 1:00PM, 2:00PM, 3:00PM, 4:00PM ET CLOSE – Nadex
shall list a set of five (5) Call Spread Contracts that open 2 hours prior to
the stated closing time(s) above with overlapping ranges, which conformto the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X - 25; The Floor shall be X – 75.

(2)

CONTRACT 2: The Ceiling shall be X; The Floor shall be X – 50.

(3)

CONTRACT 3: The Ceiling shall be X + 25; The Floor shall be X – 25.

(4)

CONTRACT 4: The Ceiling shall be X + 50; The Floor shall be X.

(5)

CONTRACT 5: The Ceiling shall be X + 75; The Floor shall be X + 25.

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 4.

(7)

In each case, “X” equals the last NQFC price, as reported by the
Source Agency, rounded to the nearest 5.

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for US Tech 100 Call Spread Variable
Payout Contracts shall be 0.25.

(g)

POSITION LIMIT – The Position Limits for US Tech 100 Call Spread Variable
Payout Contracts shall be 250 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the US
Tech 100 Call Spread Variable Payout Contracts for contracted Market Makers
shall be 500 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date of the Contract is the same date as
the Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the US Tech 100 Expiration Value is released by the Source Agency.

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(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EXPIRATION VALUE – The Expiration Value is the US Tech 100 Index Value ascalculated by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all NQFC trade prices occurring in theten (10) seconds leading up to the close of trading of the US Tech 100 Call Spread
Contract, provided at least twenty-five (25) trade prices are captured during the ten(10) second period, removing the highest twenty (20) percent of NQFC trade prices
and the lowest twenty (20) percent of NQFC trade prices from the data set98, andusing the remaining NQFC trade prices to calculate the Expiration Value. The
calculation used is a simple average of the remaining NQFC trade prices in thedata set, rounded to one decimal point past the precision of the underlying market.
In the event the time it takes to collect at least twenty-five (25) NQFC trade prices
exceeds the ten (10) seconds just prior to the close of trading of the US Tech 100
Call Spread Contract, the Expiration Value is calculated by the Source Agency bytaking the last twenty-five (25) NQFC trade prices just prior to the close of tradingof the US Tech 100 Call Spread Contract removing the highest five (5) NQFC trade
prices and the lowest five (5) NQFC trade prices, and using the remaining fifteen(15) NQFC trade prices to calculate the Expiration Value. The calculation used is a
simple average of all fifteen (15) NQFC trade prices, rounded to one decimal point
past the precision of the underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
agency, the Settlement Date will be delayed until the Underlying number is released
for the Series.

RULE 12.62.2 US TECH 100 “TOUCH BRACKET” VARIABLE PAYOUT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the US
Tech 100 Touch Bracket Variable Payout Contracts, referred to as a ‘Touch
Bracket’, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the price of the E-mini
NASDAQ 100® Futures contracts (“NQFC”) traded on the Chicago Mercantile

98 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

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Exchange (CME®)99. The NQFC trade prices that will be used to calculate theUnderlying will be taken from four (4) NQFC delivery months: March, June,
September, or December (each a “NQFC Delivery Month”). The date on which a
new delivery month will be used as the Underlying for Nadex contracts (i.e. “Start
Date”) is one calendar day after the End Date for the previous delivery monthcontract. The last day on which a delivery month will be used as the Underlying for
Nadex contracts (i.e. “End Date”) is the Friday of the week preceding the Underlying
futures contracts Expiration Date. For example, the CME e-mini NASDAQ 100
March 2012 futures have an Expiration Date of March 16, 2012. The last day on
which the e-mini NASDAQ 100 March 2012 futures prices will be used as theUnderlying for Nadex contracts and to calculate the Expiration Value on the
Expiration Date for the relevant e-mini NASDAQ 100 contracts will be the Friday ofthe preceding week. Therefore, the End Date for using CME e-mini NASDAQ 100
March 2012 futures will be March 9, 2012 and the Start Date for the next delivery
month, CME e-mini NASDAQ 100 June 2012 futures, will be March 10, 2012.
(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the US Tech 100
Touch Bracket Contracts, the Payout Criteria for the Contracts will be set as
follows:(i)

WEEKLY US TECH 100 TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Close Time is the earlier of 4:15PM ET on the last Trade Day of the contract
listing, or when the US Tech 100 Index Value is equal to or greater than the
Ceiling, or equal to or less than the Floor. Nadex shall list a set of four (4)Touch Bracket Variable Payout Contracts, referred to as a ‘Touch Bracket’,that open at 3:00AM ET on the first Trade Day of the week, with overlapping
ranges, which conform to the Payout Criteria listed below.
(1)

CONTRACT 1: The Ceiling shall be X + 120; The Floor shall be X –
30.

(2)

CONTRACT 2: The Ceiling shall be X + 90; The Floor shall be X – 60.

99 CME® is a registered mark of the Chicago Mercantile Exchange. NASDAQ-100 are registered marks of the Nasdaq

Stock Market, Inc. Nadex is not affiliated with the Chicago Mercantile Exchange or Nasdaq Stock Market and neither
the Chicago Mercantile Exchange, the Nasdaq Market, nor its affiliates, sponsor or endorse Nadex or its products inany way. In particular, the Nadex US Tech 100 Contracts are not sponsored, endorsed, sold or promoted by CME or the
Nasdaq Stock Market.

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(ii)

(3)

CONTRACT 3: The Ceiling shall be X + 60; The Floor shall be X – 90.

(4)

CONTRACT 4: The Ceiling shall be X + 30; The Floor shall be X –
120.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 4.

(6)

In each case, “X” equals the last US Tech 100 price, as reported by
the Source Agency, rounded to the nearest 1.

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 120 (or 30) and a Floor of X – 30 (or 120)
where X equals the Ceiling (or Floor) of the Touch Bracket that expired
early. The newly listed Touch Bracket will have the same Last Trade Day as
originally established for the expired Touch Bracket and the same Dollar
Multiplier as the expired Touch Bracket.

(f)

MINIMUM TICK – The Minimum Tick size for the US Tech 100 Touch Bracket
Variable Payout Contracts shall be 0.25.

(g)

POSITION LIMIT – The Position Limit for US Tech 100 Touch Bracket Variable
Payout Contracts shall be 100 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the US
Tech 100 Touch Bracket Variable Payout Contracts for contracted Market Makers
shall be 100,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date of the Contract is the same date as
the Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the US Tech 100 Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

US TECH 100 INDEX VALUE – The Source Agency shall calculate and produce a
US Tech 100 Index Value once each second throughout the life of the US Tech 100
Variable Payout contracts. That is, each second the Source Agency will calculate
a US Tech 100 Index Value by taking by taking all NQFC trade prices occurring in
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the ten (10) seconds leading up to the Calculation Time, provided at least twentyfive (25) trade prices are captured during the ten (10) second period, removing thehighest twenty (20) percent of NQFC trade prices and the lowest twenty (20)percent of NQFC trade prices from the data set100, and using the remaining NQFC
trade prices to calculate the US Tech 100 Index Value for that second. The
calculation used is a simple average of the remaining NQFC trade prices in thedata set, rounded to one decimal point past the precision of the underlying market.
In the event the time it takes to collect at least twenty-five (25) NQFC trade prices
exceeds the ten (10) second period, the US Tech 100 Index Value will be calculatedby the Source Agency by taking the last twenty-five (25) NQFC trade prices justprior to the Calculation Time, removing the highest five (5) NQFC trade prices andthe lowest five (5) NQFC trade prices, and using the remaining fifteen (15) NQFC
trade prices to calculate the US Tech 100 Index Value. The calculation used is a
simple average of all fifteen (15) NQFC trade prices, rounded to one decimal point
past the precision of the underlying market.
(n)

EXPIRATION VALUE – The Expiration Value is the US Tech 100 Index Value as
released by the Source Agency at Expiration.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
agency, the Settlement Date will be delayed until the Underlying number is released
for the Series.
US TECH 100 BINARY CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the US
Tech 100 Binary Contracts issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Binary Contracts is the price of
the E-mini NASDAQ 100® Futures contracts (“NQFC”) traded on the Chicago
Mercantile Exchange® (CME®)101. The NQFC trade prices that will be used to
calculate the Underlying will be taken from four (4) NQFC delivery months: March,June, September, or December (each a “NQFC Delivery Month”). The date on whicha new delivery month will be used as the Underlying for Nadex contracts (i.e. “Start

100 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.
101 CME® is a registered mark of the Chicago Mercantile Exchange. NASDAQ-100 are registered marks of the Nasdaq
Stock Market, Inc. Nadex is not affiliated with the Chicago Mercantile Exchange or Nasdaq Stock Market and neither
the Chicago Mercantile Exchange, the Nasdaq Market, nor its affiliates, sponsor or endorse Nadex or its products inany way. In particular, the Nadex US Tech 100 Contracts are not sponsored, endorsed, sold or promoted by CME or the
Nasdaq Stock Market.

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Date”) is one calendar day after the End Date for the previous delivery monthcontract. The last day on which a delivery month will be used as the Underlying for
Nadex contracts (i.e. “End Date”) is the Friday of the week preceding the Underlying
futures contracts Expiration Date. For example, the CME e-mini NASDAQ 100
March 2012 futures have an Expiration Date of March 16, 2012. The last day on
which the e-mini NASDAQ 100 March 2012 futures prices will be used as theUnderlying for Nadex contracts and to calculate the Expiration Value on the
Expiration Date for the relevant e-mini NASDAQ 100 contracts will be the Friday ofthe preceding week. Therefore, the End Date for using CME e-mini NASDAQ 100
March 2012 futures will be March 9, 2012 and the Start Date for the next delivery
month, CME e-mini NASDAQ 100 June 2012 futures, will be March 10, 2012.
(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the US Tech 100 Binary
Contract, the Payout Criteria for the Contracts will be set as follows:
(i)

(ii)

WEEKLY US TECH 100 BINARY CONTRACTS(1)

EXPIRATION TIME – 4:15PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 144.

(3)

NUMBER OF STRIKE LEVELS LISTED – Thirteen (13) strike levels
will be listed for the Weekly US Tech 100 Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “W” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest one (1). Six (6) strikelevels will be generated above Binary Contract W at an interval of
144, and six (6) strike levels will be generated below Binary Contract
W at an interval of 144 (e.g. W – 144; W; W + 144). The Contract will
have a Payout Criterion of greater than the strike level value.

DAILY US TECH 100 BINARY CONTRACTS(1)

EXPIRATION TIME – 4:15PM ET CLOSE

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(iii)(iv)(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 48.

(3)

NUMBER OF STRIKE LEVELS LISTED - Twenty-one (21) strike levels
will be listed for the Daily US Tech 100 Binary Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest one (1). Ten (10)strike levels will be generated above Binary Contract X at an intervalof 24, and ten (10) strike levels will be generated below Binary
Contract X at an interval of 24 (e.g. X – 24; X; X + 24). The Contract
will have a Payout Criterion of greater than the strike level value.

INTRADAY US TECH 100 2-HOUR BINARY CONTRACTS(1)

EXPIRATION TIME – 10:00AM, 11:00AM, 12:00PM, 1:00PM,
2:00PM, 3:00PM, 4:00PM, 5:00PM ET CLOSE (5:00PM only Monday– Thursday)(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 12.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fifteen (15) strike levels will
be listed for each Intraday US Tech 100 2-Hour Binary Contract
Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest one (1). Seven (7)strike levels will be generated above Binary Contract Y at an intervalof 12, and seven (7) strike levels will be generated below Binary
Contract Y at an interval of 12 (e.g. Y – 12; Y; Y + 12). The Contract
will have a Payout Criterion of greater than the strike level value.

INTRADAY US TECH 100 20-MINUTE BINARY CONTRACTS(1)

EXPIRATION TIME – 10:00AM, 10:20AM, 10:40AM, 11:00AM,
11:20AM, 2:40PM, 3:00PM, 3:20PM, 3:40PM 4:00PM ET CLOSE
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(v)

(vi)

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 4.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fifteen (15) strike levels will
be listed for each Intraday US Tech 100 20-Minute Binary Contract
Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest 0.5. Seven (7) strikelevels will be generated above Binary Contract Z at an interval of 4,
and seven (7) strike levels will be generated below Binary Contract
Z at an interval of 4 (e.g. Z - 4; Z; Z + 4). The Contract will have a
Payout Criterion of greater than the strike level value.

INTRADAY US TECH 100 20-MINUTE BINARY CONTRACTS(1)

EXPIRATION TIME – 11:40AM, 12:00PM, 12:20PM, 12:40PM,
1:00PM, 1:20PM, 1:40PM, 2:00PM, 2:20PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 3.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fifteen (15) strike levels will
be listed for each Intraday US Tech 100 20-Minute Binary Contract
Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest 0.5. Seven (7) strikelevels will be generated above Binary Contract Z at an interval of 3,
and seven (7) strike levels will be generated below Binary Contract
Z at an interval of 3 (e.g. Z – 3; Z; Z + 3). The Contract will have a
Payout Criterion of greater than the strike level value.

Nadex may list additional US Tech 100 Binary Contracts with different
ranges of Payout Criteria on a discretionary basis in accordance with the
CEA and Commission Regulations.

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(f)

MINIMUM TICK – The Minimum Tick size for the US Tech 100 Binary Contracts
shall be $0.25.

(g)

POSITION LIMIT – The Position Limits for the US Tech 100 Binary Contracts shallbe 2,500 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the US
Tech 100 Binary Contracts for contracted Market Makers shall be 5,000 Contracts
per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Expiration Date.

(j)

SETTLEMENT DATE – The Settlement Date in a Series is the same date as the
Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the US Tech 100 Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in- the-money Contract on the Settlement Date. The Settlement Value of an inthe-money US Tech 100 Binary Contract is $100.

(m)

EXPIRATION VALUE – The Expiration Value is the level of US Tech 100 as
calculated by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all NQFC trade prices occurring in theten (10) seconds leading up to the close of trading of the US Tech 100 Binary
Contract, provided at least twenty-five (25) trade prices are captured during the ten(10) second period, removing the highest twenty (20) percent of NQFC trade prices
and the lowest twenty (20) percent of NQFC trade prices from the data set102, andusing the remaining NQFC trade prices to calculate the Expiration Value. The
calculation used is a simple average of the remaining NQFC trade prices in thedata set, rounded to one decimal point past the precision of the underlying market.
In the event the time it takes to collect at least twenty-five (25) NQFC trade prices
exceeds the ten (10) seconds just prior to the close of trading of the US Tech 100
Binary Contract, the Expiration Value is calculated by the Source Agency by taking
the last twenty-five (25) NQFC trade prices just prior to the close of trading of the
US Tech 100 Binary Contract removing the highest five (5) NQFC trade prices andthe lowest five (5) NQFC trade prices, and using the remaining fifteen (15) NQFC
trade prices to calculate the Expiration Value. The calculation used is a simple

102 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

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average of all fifteen (15) NQFC trade prices, rounded to one decimal point past
the precision of the underlying market.
(n)

CONTINGENCIES – If no daily settlement price of the relevant NQFC is announced
by the Source Agency, the Settlement Date will be delayed until such daily
settlement price for that Series is released and publicly available.
WALL STREET 30 VARIABLE PAYOUT CONTRACTS

RULE 12.64.1 WALL STREET 30 “CALL SPREAD” VARIABLE PAYOUT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the WallStreet 30 Call Spread Variable Payout Contracts, referred to as a ‘Call Spread’,issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the price of the E-mini
Dow® Futures contracts (“DJFC”) traded on the Chicago Board of Trade(CBOT®)103. The DJFC trade prices that will be used to calculate the Underlying
will be taken from four (4) DJFC delivery months: March, June, September, or
December (each a “DJFC Delivery Month”). The date on which a new delivery
month will be used as the Underlying for Nadex contracts (i.e. “Start Date”) is one
calendar day after the End Date for the previous delivery month contract. The last
day on which a delivery month will be used as the Underlying for Nadex contracts(i.e. “End Date”) is the Friday of the week preceding the Underlying futurescontracts Expiration Date. For example, the CME e-mini Dow March 2012 futures
have an Expiration Date of March 16, 2012. The last day on which the e-mini Dow
March 2012 futures prices will be used as the Underlying for Nadex contracts andto calculate the Expiration Value on the Expiration Date for the relevant e-mini Dow
contracts will be the Friday of the preceding week. Therefore, the End Date forusing CME e-mini Dow March 2012 futures will be March 9, 2012 and the Start
Date for the next delivery month, CME e-mini Dow June 2012 futures, will be March
10, 2012.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

103 CBOT® is a registered service mark of the Board of Trade of the City of Chicago, “Dow Jones,” “DJIA,” and “TheDow” are registered trademarks of Dow Jones & Company, Inc. Nadex is not affiliated with the Board of Trade of theCity of Chicago or Dow Jones and neither the Board of Trade of the City of Chicago, Dow Jones, nor its affiliates,
sponsor or endorse Nadex or its products in any way. In particular, the Nadex Wall Street 30 Contracts are notsponsored, endorsed, sold or promoted by CBOT or Dow Jones.

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(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the Wall Street
30 Call Spreads, the Payout Criteria for the Contracts will be set as follows:(i)

DAILY WALL STREET 30 CALL SPREAD VARIABLE PAYOUT CONTRACTS,
4:15 PM ET CLOSE - At the commencement of trading in a Daily Wall Street
30 Call Spread, Nadex shall list one (1) Call Spread Contract, which
conforms to the Payout Criteria listed below:
(1)

(2)

(ii)

(iii)

DAILY WALL STREET 30 CALL SPREAD CONTRACTA.

CEILING – The Ceiling shall be X + 400.

B.

FLOOR – The Floor shall be X – 400.

C.

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1.

In each case, “X” equals the last DJFC price, as reported by the
Source Agency, rounded to the nearest 100.

DAILY WALL STREET 30 CALL SPREAD CONTRACTS, 4:15 PM ET CLOSE– Nadex shall list a set of three (3) Call Spread Payout Contracts withoverlapping ranges, which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 400.

(2)

CONTRACT 2: The Ceiling shall be X + 200; The Floor shall be X –
200.

(3)

CONTRACT 3: The Ceiling shall be X + 400; The Floor shall be X.

(4)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1.

(5)

In each case, “X” equals the last DJFC price, as reported by the
Source Agency, rounded to the nearest 100.

INTRADAY WALL STREET 30 CALL SPREAD CONTRACTS, 8AM ET to 4:15
PM ET CLOSE - Nadex shall list a set of five (5) Call Spread Contracts withoverlapping ranges, which conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X – 150; The Floor shall be X –
450.

(2)

CONTRACT 2: The Ceiling shall be X; The Floor shall be X – 300.

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(iv)

(v)

(3)

CONTRACT 3: The Ceiling shall be X + 150; The Floor shall be X –
150.

(4)

CONTRACT 4: The Ceiling shall be X + 300; The Floor shall be X.

(5)

CONTRACT 5: The Ceiling shall be X + 450; The Floor shall be X +
150.

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1.

(7)

In each case, “X” equals the last DJFC price, as reported by the
Source Agency, rounded to the nearest 50.

INTRADAY 2-HOUR WALL STREET 30 CALL SPREAD CONTRACTS,
10:00AM, 11:00AM, 12:00PM, 1:00PM, 2:00PM, 3:00PM, 4:00PM ET CLOSE– Nadex shall list a set of five (5) Call Spread Contracts that open 2 hours
prior to the stated closing time(s) above with overlapping ranges, which
conform to the Payout Criteria listed below:(1)

CONTRACT 1: The Ceiling shall be X - 50; The Floor shall be X – 150.

(2)

CONTRACT 1: The Ceiling shall be X; The Floor shall be X – 100.

(3)

CONTRACT 2: The Ceiling shall be X + 50; The Floor shall be X – 50.

(4)

CONTRACT 3: The Ceiling shall be X + 100; The Floor shall be X.

(5)

CONTRACT 5: The Ceiling shall be X + 150; The Floor shall be X +
50.

(6)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1.

(7)

In each case, “X” equals the last DJFC price, as reported by the
Source Agency, rounded to the nearest 5.

Nadex may list additional Call Spread Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for Wall Street 30 Call Spread Variable
Payout Contracts shall be 1.

(g)

POSITION LIMIT – The Position Limits for Wall Street 30 Call Spread Variable
Payout Contracts shall be 250 Contracts per Class.

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(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the WallStreet 30 Call Spread Variable Payout Contracts for contracted Market Makers
shall be 500 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date of the Contract is the same date as
the Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the Wall Street 30 Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

EXPIRATION VALUE – The Expiration Value is the Wall Street 30 Index Value ascalculated by the Source Agency on the Expiration Date. The Expiration Value iscalculated by the Source Agency by taking all DJFC trade prices occurring in theten (10) seconds leading up to the close of trading of the Wall Street 30 Call Spread
Contract, provided at least twenty-five (25) trade prices are captured during the ten(10) second period, removing the highest twenty (20) percent of DJFC trade prices
and the lowest twenty (20) percent of DJFC trade prices from the data set104, andusing the remaining DJFC trade prices to calculate the Expiration Value. The
calculation used is a simple average of the remaining DJFC trade prices in the dataset, rounded to the precision of the underlying market. In the event the time it takes
to collect at least twenty-five (25) DJFC trade prices exceeds the ten (10) seconds
just prior to the close of trading of the Wall Street 30 Call Spread Contract, theExpiration Value is calculated by the Source Agency by taking the last twenty-five(25) DJFC trade prices just prior to the close of trading of the Wall Street 30 Call
Spread Contract removing the highest five (5) DJFC trade prices and the lowest
five (5) DJFC trade prices, and using the remaining fifteen (15) DJFC trade prices
to calculate the Expiration Value. The calculation used is a simple average of all
fifteen (15) DJFC trade prices, rounded to the precision of the underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source

104 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

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292agency, the Settlement Date will be delayed until the Underlying number is released
for the Series.
RULE 12.64.2 WALL STREET 30 “TOUCH BRACKET” VARIABLE PAYOUT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the WallStreet 30 Touch Bracket Variable Payout Contracts, referred to as a ‘Touch
Bracket’, issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the price of the E-mini
Dow® Futures contracts (“DJFC”) traded on the Chicago Board of Trade(CBOT®)105. The DJFC trade prices that will be used to calculate the Underlying
will be taken from four (4) DJFC delivery months: March, June, September, or
December (each a “DJFC Delivery Month”). The date on which a new delivery
month will be used as the Underlying for Nadex contracts (i.e. “Start Date”) is one
calendar day after the End Date for the previous delivery month contract. The last
day on which a delivery month will be used as the Underlying for Nadex contracts(i.e. “End Date”) is the Friday of the week preceding the Underlying futurescontracts Expiration Date. For example, the CME e-mini Dow March 2012 futures
have an Expiration Date of March 16, 2012. The last day on which the e-mini Dow
March 2012 futures prices will be used as the Underlying for Nadex contracts andto calculate the Expiration Value on the Expiration Date for the relevant e-mini Dow
contracts will be the Friday of the preceding week. Therefore, the End Date forusing CME e-mini Dow March 2012 futures will be March 9, 2012 and the Start
Date for the next delivery month, CME e-mini Dow June 2012 futures, will be March
10, 2012.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Variable Payout Contracts are initially issued. For the Wall Street
30 Touch Bracket Contracts the Payout Criteria for the Contracts will be set as
follows:(i)

WEEKLY WALL STREET 30 TOUCH BRACKET VARIABLE PAYOUT
CONTRACTS, Close Time is the earlier of 4:15PM ET on the last Trade Dayof the contract listing, or when the Wall Street 30 Index Value is equal to or

105 CBOT® is a registered service mark of the Board of Trade of the City of Chicago, “Dow Jones,” “DJIA,” and “TheDow” are registered trademarks of Dow Jones & Company, Inc. Nadex is not affiliated with the Board of Trade of theCity of Chicago or Dow Jones and neither the Board of Trade of the City of Chicago, Dow Jones, nor its affiliates,
sponsor or endorse Nadex or its products in any way. In particular, the Nadex Wall Street 30 Contracts are notsponsored, endorsed, sold or promoted by CBOT or Dow Jones.

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293greater than the Ceiling, or equal to or less than the Floor. Nadex shall lista set of four (4) Touch Bracket Variable Payout Contracts, referred to as a
‘Touch Bracket’, that open at 3:00AM ET on the first Trade Day of the week,with overlapping ranges, which conform to the Payout Criteria listed below.

(ii)

(1)

CONTRACT 1: The Ceiling shall be X + 400; The Floor shall be X –
100.

(2)

CONTRACT 2: The Ceiling shall be X + 300; The Floor shall be X –
200.

(3)

CONTRACT 3: The Ceiling shall be X + 200; The Floor shall be X –
300.

(4)

CONTRACT 4: The Ceiling shall be X + 100; The Floor shall be X –
400.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1.

(6)

In each case, “X” equals the last Wall Street 30 price, as reported by
the Source Agency, rounded to the nearest 10.

Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch
Bracket with a Ceiling of X + 400 (or 100) and a Floor of X – 100 (or 400)
where X equals the Ceiling (or Floor) of the Touch Bracket that expired
early. The newly listed Touch Bracket will have the same Last Trade Day as
originally established for the expired Touch Bracket and the same Dollar
Multiplier as the expired Touch Bracket.

(f)

MINIMUM TICK – The Minimum Tick size for Wall Street 30 Touch Bracket
Variable Payout Contracts shall be 1.

(g)

POSITION LIMIT – The Position Limit for Wall Street 30 Touch Bracket Variable
Payout Contracts shall be 100 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the WallStreet 30 Touch Bracket Variable Payout Contracts for contracted Market Makers
shall be 100,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date of the Contract is the same date as
the Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.
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(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the Wall Street 30 Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

WALL STREET 30 INDEX VALUE – The Source Agency shall calculate and produce
a Wall Street 30 Index Value once each second throughout the life of the WallStreet 30 Variable Payout contracts. That is, each second the Source Agency willcalculate a Wall Street 30 Index Value by taking by taking all DJFC trade prices
occurring in the ten (10) seconds leading up to the Calculation Time, provided atleast twenty-five (25) trade prices are captured during the ten (10) second period,
removing the highest twenty (20) percent of DJFC trade prices and the lowest
twenty (20) percent of DJFC trade prices from the data set106, and using theremaining DJFC trade prices to calculate the Wall Street 30 Index Value for that
second. The calculation used is a simple average of the remaining DJFC trade
prices in the data set, rounded to the precision of the underlying market. In theevent the time it takes to collect at least twenty-five (25) DJFC trade prices
exceeds the ten (10) second period, the Wall Street 30 Index Value will becalculated by the Source Agency by taking the last twenty-five (25) DJFC trade
prices just prior to the Calculation Time, removing the highest five (5) DJFC trade
prices and the lowest five (5) DJFC trade prices, and using the remaining fifteen(15) DJFC trade prices to calculate the Wall Street 30 Index Value. The calculation
used is a simple average of all fifteen (15) DJFC trade prices, rounded to theprecision of the underlying market.

(n)

EXPIRATION VALUE – The Expiration Value is the Wall Street 30 Index Value as
released by the Source Agency at Expiration.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
agency, the Settlement Date will be delayed until the Underlying number is released
for the Series.
WALL STREET 30 BINARY CONTRACTS

106 If 20% of the data set would result in a non-integer number of trade prices, the number of trade prices to be removed

from the set will be rounded down. For example, if the number of trade prices collected during the last 10 seconds prior
to the close of trading was 31, 20% of the data set would be 6.2 trade prices. As 6.2 is a non-integer number, the value
will be rounded down, and the 6 highest and 6 lowest trade prices will be removed from the data set.

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(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the WallStreet 30 Binary Contracts issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the price of the E-mini
Dow® Futures contracts (“DJFC”) traded on the Chicago Board of Trade(CBOT®)107. The DJFC trade prices that will be used to calculate the Underlying
will be taken from four (4) DJFC delivery months: March, June, September, or
December (each a “DJFC Delivery Month”). The date on which a new delivery
month will be used as the Underlying for Nadex contracts (i.e. “Start Date”) is one
calendar day after the End Date for the previous delivery month contract. The last
day on which a delivery month will be used as the Underlying for Nadex contracts(i.e. “End Date”) is the Friday of the week preceding the Underlying futurescontracts Expiration Date. For example, the CME e-mini Dow March 2012 futures
have an Expiration Date of March 16, 2012. The last day on which the e-mini Dow
March 2012 futures prices will be used as the Underlying for Nadex contracts andto calculate the Expiration Value on the Expiration Date for the relevant e-mini Dow
contracts will be the Friday of the preceding week. Therefore, the End Date forusing CME e-mini Dow March 2012 futures will be March 9, 2012 and the Start
Date for the next delivery month, CME e-mini Dow June 2012 futures, will be March
10, 2012.

(c)

SOURCE AGENCY – The Source Agency is Nadex.

(d)

TYPE – The Type of Contract is a Binary Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Binary Contracts are initially issued. For the Wall Street 30 Binary
Contract, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY WALL STREET 30 BINARY CONTRACTS(1)

EXPIRATION TIME – 4:15PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 200.

(3)

NUMBER OF STRIKE LEVELS LISTED – Thirteen (13) strike levels
will be listed for the Weekly Wall Street 30 Binary Contract Series.

107 CBOT® is a registered service mark of the Board of Trade of the City of Chicago, “Dow Jones,” “DJIA,” and “TheDow” are registered trademarks of Dow Jones & Company, Inc. Nadex is not affiliated with the Board of Trade of theCity of Chicago or Dow Jones and neither the Board of Trade of the City of Chicago, Dow Jones, nor its affiliates,
sponsor or endorse Nadex or its products in any way. In particular, the Nadex Wall Street 30 Contracts are notsponsored, endorsed, sold or promoted by CBOT or Dow Jones.

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(4)

(ii)

(iii)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “W” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest one (1). Six (6) strikelevels will be generated above Binary Contract W at an interval of200, and six (6) strike levels will be generated below Binary Contract
W at an interval of 200 (e.g. W – 200; W; W + 200). The Contract will
have a Payout Criterion of greater than the strike level value.

DAILY WALL STREET 30 BINARY CONTRACTS(1)

EXPIRATION TIME – 4:15PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 80.

(3)

NUMBER OF STRIKE LEVELS LISTED – Twenty-one (21) strikelevels will be listed for the Daily Wall Street 30 Binary Contract
Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Binary Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest one (1). Ten (10)strike levels will be generated above Binary Contract X at an intervalof 40, and ten (10) strike levels will be generated below Binary
Contract X at an interval of 40 (e.g. X – 40; X; X + 40). The Contract
will have a Payout Criterion of greater than the strike level value.

INTRADAY WALL STREET 30 2-HOUR BINARY CONTRACTS(1)

EXPIRATION TIME – 10:00AM, 11:00AM, 12:00PM, 1:00PM,
2:00PM, 3:00PM, 4:00PM, 5:00PM ET CLOSE (5:00PM only Monday– Thursday)(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 24.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fifteen (15) strike levels will
be listed for each Intraday Wall Street 30 2-Hour Binary Contract
Series.
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(4)

(iv)

(v)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest one value ending in
1, 3, 5, 7, or 9 as reported by the Source Agency. Seven (7) strikelevels will be generated above Binary Contract Y at an interval of 24,
and seven (7) strike levels will be generated below Binary Contract
Y at an interval of 24 (e.g. Y – 24; Y; Y + 24). The Contract will havea Payout Criterion of greater than the strike level value.

INTRADAY WALL STREET 30 20-MINUTE BINARY CONTRACTS(1)

EXPIRATION TIME – 10:00AM, 10:20AM, 10:40AM, 11:00AM,
11:20AM, 2:40PM, 3:00PM, 3:20PM, 3:40PM 4:00PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 8.

(3)

NUMBER OF STRIKE LEVELS LISTED – Fifteen (15) strike levels will
be listed for each Intraday Wall Street 30 20-Minute Binary Contract
Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0, 2, 4, 6, or 8. Seven (7) strike levels will be generated above
Binary Contract Z at an interval of 8, and seven (7) strike levels will
be generated below Binary Contract Z at an interval of 8 (e.g. Z - 8;
Z; Z + 8). The Contract will have a Payout Criterion of greater than
the strike level value.

INTRADAY WALL STREET 30 20-MINUTE BINARY CONTRACTS(1)

EXPIRATION TIME – 11:40AM, 12:00PM, 12:20PM, 12:40PM,
1:00PM, 1:20PM, 1:40PM, 2:00PM, 2:20PM ET CLOSE(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 6.

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(vi)

(3)

NUMBER OF STRIKE LEVELS LISTED – Fifteen (15) strike levels will
be listed for each Intraday Wall Street 30 20-Minute Binary Contract
Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Binary Contract “Z” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0, 2, 4, 6, or 8. Seven (7) strike levels will be generated above
Binary Contract Z at an interval of 6, and seven (7) strike levels will
be generated below Binary Contract Z at an interval of 6 (e.g. Z – 6;
Z; Z + 6). The Contract will have a Payout Criterion of greater than
the strike level value.

Nadex may list additional Wall Street 30 Binary Contracts with different
ranges of Payout Criteria on a discretionary basis in accordance with the
CEA and Commission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for the Wall Street 30 Binary Contracts
shall be $0.25.

(g)

POSITION LIMIT – The Position Limits for the Wall Street 30 Binary Contracts shallbe 2,500 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the WallStreet 30 Binary Contracts for contracted Market Makers shall be 5,000 Contracts
per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Expiration Date.

(j)

SETTLEMENT DATE – The Settlement Date in a Series is the same date as the
Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Wall Street 30 Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in- the-money Contract on the Settlement Date. The Settlement Value of an inthe-money Wall Street 30 Binary Contract is $100.

(m)

EXPIRATION VALUE – The Expiration Value is the level of Wall Street 30 as
calculated by the Source Agency on the Expiration Date. The Expiration Value is299

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calculated by the Source Agency by taking all DJFC trade prices occurring in theten (10) seconds leading up to the close of trading of the Wall Street 30 Binary
Contract, provided at least twenty-five (25) trade prices are captured during the ten(10) second period, removing the highest twenty (20) percent of DJFC trade prices
and the lowest twenty (20) percent of DJFC trade prices from the data set108, andusing the remaining DJFC trade prices to calculate the Expiration Value. The
calculation used is a simple average of the remaining DJFC trade prices in the dataset, rounded to the precision of the underlying market. In the event the time it takes
to collect at least twenty-five (25) DJFC trade prices exceeds the ten (10) seconds
just prior to the close of trading of the Wall Street 30 Binary Contract, the Expiration
Value is calculated by the Source Agency by taking the last twenty-five (25) DJFC
trade prices just prior to the close of trading of the Wall Street 30 Binary Contract
removing the highest five (5) DJFC trade prices and the lowest five (5) DJFC trade
prices, and using the remaining fifteen (15) DJFC trade prices to calculate theExpiration Value. The calculation used is a simple average of all fifteen (15) DJFC
trade prices, rounded to the precision of the underlying market.
(n)

CONTINGENCIES – If no daily settlement price of the relevant DJFC is announced
by the Source Agency, the Settlement Date will be delayed until such daily
settlement price for that Series is released and publicly available.
– 12.75 [RESERVED]CORN YIELDS EVENT CONTRACTS(a)

SCOPE –These Rules shall apply to the Class of Contracts referred to as the Corn
Yields Event Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Projected Corn
Yields per Harvested Acre (bushels) for the current month and marketing year lastreported by the Source Agency in the World Agricultural Supply and Demand
Estimates Report. The Start Date for the Corn Yields Event Contracts will be atleast two business days prior to the next Expiration Date. The End Date will be theLast Trading Date.

(c)

SOURCE AGENCY – The Source Agency is the United States Department ofAgriculture, World Agricultural Outlook Board (“WAOB”).

(d)

TYPE – The Type of Contract is a Event Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Event Contracts are initially issued. For the Corn Yields EventContract, the Payout Criteria for the Contracts will be set as follows:300

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(i)

(ii)

WEEKLY CORN YIELDS EVENT CONTRACTS(1)

At the commencement of trading in a Corn Yields Event Contract,
Nadex shall list all eligible Payout Criteria in a range of five (5)consecutive increments between 0 and 1,000.1 as determined by
Nadex, with contract Payout Criteria of greater than (>) the
Expiration Value. For example, Nadex may list the following rangeof Payout Criteria (using the 0.3 increment): 170.1, 170.4, 170.7,
171.0, 171.3. For the next issuance, Nadex may list the following
range of Payout Criteria (using a 1.5 increment): 170.0, 171.5,
173.0, 174.5, 176.0.

(2)

In each case above, “X” equals the first Payout Criteria listed. In thefirst example above, this is 170.1; in the second example above, thisis 170.0.

Nadex may list additional Corn Yields Event Contracts with different ranges
of Payout Criteria on a discretionary basis in accordance with the
Department of Agriculture and Commission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for the Corn Yields Event Contracts shallbe $0.25.

(g)

POSITION LIMIT – There are currently no Position Limits for the Corn Yields EventContract.

(h)

LAST TRADING DATE – The Last Trading Date in a Series is the same day as the
Expiration Date. The Corn Yields Event Contracts will stop trading on the Last
Trading Date at 11:55 AM ET.

(i)

SETTLEMENT DATE – The Settlement Date will be the date the Corn Yields number
is released by the Source Agency.

(j)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Corn Yields number, as reported in the World Agricultural Supply and Demand
Estimates Report, is scheduled to be released.

(k)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney Corn Yields Event Contract is $100.

(l)

EXPIRATION VALUE – The Expiration Value is the level of the Corn Yields release
number on the Expiration Date. The Expiration Value is released by the Source
Agency at 12:00 PM ET on the Expiration Date.
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(m)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
SOYBEANS YIELDS EVENT CONTRACTS(a)

SCOPE –These Rules shall apply to the Class of Contracts referred to as the
Soybeans Yields Event Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Projected
Soybeans Yields per Harvested Acre (bushels) for the current month andmarketing year last reported by the Source Agency in the World Agricultural Supply
and Demand Estimates Report. The Start Date for the Soybeans Yields EventContracts will be at least two business days prior to the next Expiration Date. The
End Date will be the Last Trading Date.

(c)

SOURCE AGENCY – The Source Agency is the United States Department ofAgriculture, World Agricultural Outlook Board (“WAOB”).

(d)

TYPE – The Type of Contract is a Event Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Event Contracts are initially issued. For the Soybeans Yields EventContract, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY SOYBEANS YIELDS Event CONTRACTS(1)

At the commencement of trading in a Soybeans Yields EventContract, Nadex shall list all eligible Payout Criteria in a range offive (5) consecutive increments between 0 and 1,000.1 asdetermined by Nadex, with contract Payout Criteria of greater than(>) the Expiration Value. For example, Nadex may list the following
range of Payout Criteria (using the 0.3 increment): 50.1, 50.4, 50.7,
60.0, 60.3. For the next issuance, Nadex may list the following rangeof Payout Criteria (using a 1.5 increment): 61.0, 62.5, 64.0, 65.5,
67.0.

(2)

In each case above, “X” equals the first Payout Criteria listed. In thefirst example above, this is 50.1; in the second example above, thisis 61.0.

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(ii)

Nadex may list additional Soybeans Yields Event Contracts with different
ranges of Payout Criteria on a discretionary basis in accordance with the
Department of Agriculture and Commission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for the Soybeans Yields Event Contracts
shall be $0.25.

(g)

POSITION LIMIT – There are currently no Position Limits for the Soybeans Yields
Event Contract.

(h)

LAST TRADING DATE – The Last Trading Date in a Series is the same day as the
Expiration Date. The Soybeans Yields Event Contracts will stop trading on the Last
Trading Date at 11:55 AM ET.

(i)

SETTLEMENT DATE – The Settlement Date will be the date the Soybeans Yields
number is released by the Source Agency.

(j)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Soybeans Yields number, as reported in the World Agricultural Supply and
Demand Estimates Report, is scheduled to be released.

(k)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney Soybeans Yields Event Contract is $100.

(l)

EXPIRATION VALUE – The Expiration Value is the level of the Soybeans Yields
release number on the Expiration Date. The Expiration Value is released by the
Source Agency at 12:00 PM ET on the Expiration Date.

(m)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CRUDE OIL INVENTORIES CHANGE EVENT CONTRACTS(a)

SCOPE –These Rules shall apply to the Class of Contracts referred to as the Crude
Oil Inventories Change Event Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the weekly increaseor decrease in Crude Oil Inventories last reported by the Source Agency. The Start
Date for the Crude Oil Inventories Change Event Contracts will be at least two
business days prior to the next Expiration Date. The End Date will be the Last
Trading Date.
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(c)

SOURCE AGENCY – The Source Agency is the United States Energy Information
Administration.

(d)

TYPE – The Type of Contract is a Event Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Event Contracts are initially issued. For the Crude Oil Inventories
Change Event Contract, the Payout Criteria for the Contracts will be set as follows:
(i)

(ii)

WEEKLY CRUDE OIL INVENTORIES CHANGE EVENT CONTRACTS(1)

At the commencement of trading in a Crude Oil Inventories Change
Event Contract, Nadex shall list all eligible Payout Criteria in a rangeof five (5) consecutive increments between -10,000,000 and
10,000,000, as determined by Nadex, with contract Payout Criteriaof greater than (>) the Expiration Value. For example, Nadex may
list the following range of Payout Criteria (using the 1,000,000
increment): 1,000,000, 2,000,000, 3,000,000, 4,000,000, and
5,000,000. For the next issuance, Nadex may list the following
range of Payout Criteria (using a 2,000,000 increment): -2,000,000,
0, 2,000,000, 4,000,000, and 6,000,000.

(2)

In each case above, “X” equals the first Payout Criteria listed. In thefirst example above, this is 1,000,000; in the second example above,
this is -2,000,000.

Nadex may list additional Crude Oil Inventories Change Event Contracts
with different ranges of Payout Criteria on a discretionary basis inaccordance with the Energy Information Administration and Commission
Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for the Crude Oil Inventories Change
Event Contracts shall be $0.25.

(g)

POSITION LIMIT – There are currently no Position Limits for the Crude Oil
Inventories Change Event Contract.

(h)

LAST TRADING DATE – The Last Trading Date in a Series is the same day as the
Expiration Date. The Crude Oil Inventories Change Event Contracts will stop
trading on the Last Trading Date at 10:25 AM ET.

(i)

SETTLEMENT DATE – The Settlement Date will be the date the Crude Oil
Inventories Change number is released by the Source Agency.

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(j)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Crude Oil Inventories Change number, as reported in the Weekly Petroleum
Status Report, is scheduled to be released.

(k)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney Crude Oil Inventories Change Event Contract is $100.

(l)

EXPIRATION VALUE – The Expiration Value is the level of the Crude Oil Inventories
Change release number on the Expiration Date. The Expiration Value is releasedby the Source Agency at 10:30 AM ET on the Expiration Date.

(m)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
NATURAL GAS NET CHANGE (BCF) EVENT CONTRACTS(a)

SCOPE –These Rules shall apply to the Class of Contracts referred to as the
Natural Gas Net Change (bcf) Event Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the weekly Natural
Gas Net Change (bcf) last reported by the Source Agency. The Start Date for the
Natural Gas Net Change (bcf) Event Contracts will be at least two business days
prior to the next Expiration Date. The End Date will be the Last Trading Date.

(c)

SOURCE AGENCY – The Source Agency is the United States Energy Information
Administration.

(d)

TYPE – The Type of Contract is a Event Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Event Contracts are initially issued. For the Natural Gas Net Change
Event Contract, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY NATURAL GAS NET CHANGE BINARY CONTRACTS(1)

At the commencement of trading in a Natural Gas Net Change
Event Contract, Nadex shall list all eligible Payout Criteria in a rangeof five (5) consecutive increments between -500 and 500, as
determined by Nadex, with contract Payout Criteria of greater than(>) the Expiration Value. For example, Nadex may list the following
range of Payout Criteria (using the 10 increment): 40, 50, 60, 70, and305

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80. For the next issuance, Nadex may list the following range of
Payout Criteria (using a 20 increment): 65,85,105,125, and 145.
(2)

(ii)

In each case above, “X” equals the first Payout Criteria listed. In thefirst example above, this is 40; in the second example above, this is65.

Nadex may list additional Natural Gas Net Change Event Contracts withdifferent ranges of Payout Criteria on a discretionary basis in accordancewith the Energy Information Administration and Commission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for the Natural Gas Net Change EventContracts shall be $0.25.

(g)

POSITION LIMIT – There are currently no Position Limits for the Natural Gas Net
Change Event Contract.

(h)

LAST TRADING DATE – The Last Trading Date in a Series is the same day as the
Expiration Date. The Natural Gas Net Change Event Contracts will stop trading on
the Last Trading Date at 10:25 AM ET.

(i)

SETTLEMENT DATE – The Settlement Date will be the date the Natural Gas Net
Change number is released by the Source Agency.

(j)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Natural Gas Net Change number, as reported in the Weekly Natural Gas
Storage Report, is scheduled to be released.

(k)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney Natural Gas Net Change Event Contract is $100.

(l)

EXPIRATION VALUE – The Expiration Value is the level of the Natural Gas Net
Change release number on the Expiration Date. The Expiration Value is releasedby the Source Agency at 10:30 AM ET on the Expiration Date.

(m)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CONSUMER PRICE INDEX – ALL ITEMS LESS FOOD AND ENERGY EVENTCONTRACTS

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(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theConsumer Price Index - All Items less Food and Energy “Core CPI” Event Contract
issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the monthly
percentage increase or decrease in the Consumer Price Index – All Items Less
Food and Energy last reported by the Source Agency. The Start Date for the CPI
Less Food/Energy Event Contracts will be at least two business days prior to thenext Expiration Date. The End Date will be the Last Trading Date.

(c)

SOURCE AGENCY – The Source Agency is the United States Department of Labor,
Bureau of Labor Statistics (“BLS”).

(d)

TYPE – The Type of Contract is a Event Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Event Contracts are initially issued. For the CPI Less Food/Energy
Event Contract, the Payout Criteria for the Contracts will be set as follows:
(i)

(ii)

WEEKLY CPI LESS FOOD/ENERGY EVENT CONTRACTS(1)

At the commencement of trading in a CPI Less Food/Energy EventContract, Nadex shall list all eligible Payout Criteria in a range offive (5) consecutive increments between -5.0% and 5.0%, as
determined by Nadex, with contract Payout Criteria of greater than(>) the Expiration Value. For example, Nadex may list the following
range of Payout Criteria (using the 0.1% increment): 2.2%, 2.3%,
2.4%, 2.5%, and 2.6%. For the next issuance, Nadex may list thefollowing range of Payout Criteria (using a 0.5% increment): 1.5%,
2.0%, 2.5%, 3.0%, and 3.5%.

(2)

In each case above, “X” equals the first Payout Criteria listed. In thefirst example above, this is 2.2%; in the second example above, thisis 1.5%.

Nadex may list additional CPI Less Food/Energy Event Contracts withdifferent ranges of Payout Criteria on a discretionary basis in accordancewith the Department of Labor and Commission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for the CPI Less Food/Energy EventContracts shall be $0.25.

(g)

POSITION LIMIT – There are currently no Position Limits for the CPI Less
Food/Energy Event Contract.
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(h)

LAST TRADING DATE – The Last Trading Date in a Series is the same day as the
Expiration Date. The CPI Less Food/Energy Event Contracts will stop trading on
the Last Trading Date at 8:25 AM ET.

(i)

SETTLEMENT DATE – The Settlement Date will be the date the CPI Less
Food/Energy number is released by the Source Agency.

(j)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the CPI Less Food/Energy, as reported in the CPI Report, is scheduled to bereleased.

(k)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney CPI Less Food/Energy Event Contract is $100.

(l)

EXPIRATION VALUE – The Expiration Value is the level of the CPI Less
Food/Energy release number on the Expiration Date. The Expiration Value isreleased by the Source Agency at 8:30 AM ET on the Expiration Date.

(m)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CONSUMER PRICE INDEX – FOOD AT HOME EVENT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theConsumer Price Index – Food at Home “CPI Food at Home” Event Contract issued
by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the monthly
percentage increase or decrease in the Consumer Price Index – Food at Home lastreported by the Source Agency. The Start Date for the CPI Food at Home EventContracts will be at least two business days prior to the next Expiration Date. The
End Date will be the Last Trading Date.

(c)

SOURCE AGENCY – The Source Agency is the United States Department of Labor,
Bureau of Labor Statistics (“BLS”).

(d)

TYPE – The Type of Contract is a Event Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Event Contracts are initially issued. For the CPI Food at Home EventContract, the Payout Criteria for the Contracts will be set as follows:308

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(i)

(ii)

WEEKLY CPI FOOD AT HOME EVENT CONTRACTS(1)

At the commencement of trading in a CPI Food at Home EventContract, Nadex shall list all eligible Payout Criteria in a range offive (5) consecutive increments between -5.0% and 5.0%, as
determined by Nadex, with contract Payout Criteria of greater than(>) the Expiration Value. For example, Nadex may list the following
range of Payout Criteria (using the 0.1% increment): 2.2%, 2.3%,
2.4%, 2.5%, and 2.6%. For the next issuance, Nadex may list thefollowing range of Payout Criteria (using a 0.5% increment): 1.5%,
2.0%, 2.5%, 3.0%, and 3.5%.

(2)

In each case above, “X” equals the first Payout Criteria listed. In thefirst example above, this is 2.2%; in the second example above, thisis 1.5%.

Nadex may list additional CPI Food at Home Event Contracts with different
ranges of Payout Criteria on a discretionary basis in accordance with the
Department of Labor and Commission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for the CPI Food at Home EventContracts shall be $0.25.

(g)

POSITION LIMIT – There are currently no Position Limits for the CPI Food at Home
Event Contract.

(h)

LAST TRADING DATE – The Last Trading Date in a Series is the same day as the
Expiration Date. The CPI Food at Home Event Contracts will stop trading on theLast Trading Date at 8:25 AM ET.

(i)

SETTLEMENT DATE – The Settlement Date will be the date the CPI Food at Home
number is released by the Source Agency.

(j)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the CPI Food at Home, as reported in the CPI Report, is scheduled to be released.

(k)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney CPI Food at Home Event Contract is $100.

(l)

EXPIRATION VALUE – The Expiration Value is the level of the CPI Food at Home
release number on the Expiration Date. The Expiration Value is released by the
Source Agency at 8:30 AM ET on the Expiration Date.

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(m)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CONSUMER PRICE INDEX – FOOD AWAY FROM HOME EVENT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theConsumer Price Index – Food Away From Home “CPI Food Away From Home”
Event Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the monthly
percentage increase or decrease in the Consumer Price Index – Food Away From
Home last reported by the Source Agency. The Start Date for the CPI Food Away
From Home Event Contracts will be at least two business days prior to the next
Expiration Date. The End Date will be the Last Trading Date.

(c)

SOURCE AGENCY – The Source Agency is the United States Department of Labor,
Bureau of Labor Statistics (“BLS”).

(d)

TYPE – The Type of Contract is a Event Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Event Contracts are initially issued. For the CPI Food Away From
Home Event Contract, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY CPI FOOD AWAY FROM HOME EVENT CONTRACTS(1)

At the commencement of trading in a CPI Food Away From Home
Event Contract, Nadex shall list all eligible Payout Criteria in a rangeof five (5) consecutive increments between -5.0% and 5.0%, as
determined by Nadex, with contract Payout Criteria of greater than(>) the Expiration Value. For example, Nadex may list the following
range of Payout Criteria (using the 0.1% increment): 2.2%, 2.3%,
2.4%, 2.5%, and 2.6%. For the next issuance, Nadex may list thefollowing range of Payout Criteria (using a 0.5% increment): 1.5%,
2.0%, 2.5%, 3.0%, and 3.5%

(2)

In each case above, “X” equals the first Payout Criteria listed. In thefirst example above, this is 2.2%; in the second example above, thisis 1.5%.

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(ii)

Nadex may list additional CPI Food Away From Home Event Contracts withdifferent ranges of Payout Criteria on a discretionary basis in accordancewith the Department of Labor and Commission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for the CPI Food Away From Home EventContracts shall be $0.25.

(g)

POSITION LIMIT – There are currently no Position Limits for the CPI Food Away
From Home Event Contract.

(h)

LAST TRADING DATE – The Last Trading Date in a Series is the same day as the
Expiration Date. The CPI Food Away From Home Event Contracts will stop tradingon the Last Trading Date at 8:25 AM ET.

(i)

SETTLEMENT DATE – The Settlement Date will be the date the CPI Food Away
From Home number is released by the Source Agency.

(j)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the CPI Food Away From Home, as reported in the CPI Report, is scheduled to bereleased.

(k)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney CPI Food Away From Home Event Contract is $100.

(l)

EXPIRATION VALUE – The Expiration Value is the level of the CPI Food Away From
Home release number on the Expiration Date. The Expiration Value is released by
the Source Agency at 8:30 AM ET on the Expiration Date.

(m)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CONSUMER PRICE INDEX EVENT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theConsumer Price Index “Overall CPI” Event Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the monthly
percentage increase or decrease in the Consumer Price Index last reported by the
Source Agency. The Start Date for the CPI Event Contracts will be at least two
business days prior to the next Expiration Date. The End Date will be the Last
Trading Date.
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(c)

SOURCE AGENCY – The Source Agency is the United States Department of Labor,
Bureau of Labor Statistics (“BLS”).

(d)

TYPE – The Type of Contract is a Event Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Event Contracts are initially issued. For the CPI Event Contract, thePayout Criteria for the Contracts will be set as follows:
(i)

(ii)

WEEKLY CPI EVENT CONTRACTS(1)

At the commencement of trading in a CPI Event Contract, Nadex
shall list all eligible Payout Criteria in a range of five (5) consecutive
increments between -5.0% and 5.0%, as determined by Nadex, with
contract Payout Criteria of greater than (>) the Expiration Value. For
example, Nadex may list the following range of Payout Criteria(using the 0.1% increment): 2.2%, 2.3%, 2.4%, 2.5%, and 2.6%. For
the next issuance, Nadex may list the following range of Payout
Criteria (using a 0.5% increment): 1.5%, 2.0%, 2.5%, 3.0%, and 3.5%.

(2)

In each case above, “X” equals the first Payout Criteria listed. In thefirst example above, this is 2.2%; in the second example above, thisis 1.5%.

Nadex may list additional CPI Event Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the Departmentof Labor and Commission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for the CPI Event Contracts shall be$0.25.

(g)

POSITION LIMIT – There are currently no Position Limits for the CPI EventContract.

(h)

LAST TRADING DATE – The Last Trading Date in a Series is the same day as the
Expiration Date. The CPI Event Contracts will stop trading on the Last Trading Dateat 8:25 AM ET.

(i)

SETTLEMENT DATE – The Settlement Date will be the date the CPI number isreleased by the Source Agency.

(j)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the CPI, as reported in the CPI Report, is scheduled to be released.

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(k)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney CPI Event Contract is $100.

(l)

EXPIRATION VALUE – The Expiration Value is the level of the CPI release number
on the Expiration Date. The Expiration Value is released by the Source Agency at
8:30 AM ET on the Expiration Date.

(m)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
FEDERAL BALANCE SHEET TOTAL ASSETS (MILLIONS) EVENT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theFederal Balance Sheet Total Assets (Millions) “Total Assets” Event Contract
issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the Total Assets(Millions) figure in the Consolidated Statement of Condition of All Federal Reserve
Banks last reported by the Source Agency.

(c)

The Start Date for the Total Assets Event Contracts will be at least two businessdays prior to the next Expiration Date. The End Date will be the Last Trading Date.

(d)

SOURCE AGENCY – The Source Agency is the United States Federal Reserve Bank.

(e)TYPE – The Type of Contract is a Event Contract.

(f)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Event Contracts are initially issued. For the Total Assets EventContract, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY TOTAL ASSETS EVENT CONTRACTS(1)

At the commencement of trading in a Fed Balance Sheet Total
Assets (Millions) Event Contract, Nadex shall list one (1) eligible
Payout Criteria between 1,000,000 and 25,000,000, as determinedby Nadex, with contract Payout Criteria of greater than (>) the
Expiration Value. For example, Nadex may list the following Payout
Criteria: 9,000,000.

(2)

In the case above, “X” equals the first Payout Criteria listed. In theexample above, this is 9,000,000.
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(ii)

Nadex may list additional Total Assets Event Contracts with different
ranges of Payout Criteria on a discretionary basis in accordance with theFederal Reserve Bank and Commission Regulations.

(g)

MINIMUM TICK – The Minimum Tick size for the Total Assets Event Contracts
shall be $0.25.

(h)

POSITION LIMIT – There are currently no Position Limits for the Total Assets EventContract.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same day as the
Expiration Date. The Total Assets Event Contracts will stop trading on the Last
Trading Date at 4:25 PM ET.

(j)

SETTLEMENT DATE – The Settlement Date will be the date the Total Assets
number is released by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Total Assets (Millions), as reported in the Factors Affecting Reserve Balances
Report, is scheduled to be released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney Total Assets Event Contract is $100.

(m)

EXPIRATION VALUE – The Expiration Value is the level of the Total Assets(Millions) release number on the Expiration Date. The Expiration Value is releasedby the Source Agency at 4:30 PM ET on the Expiration Date.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
NEW HOME SALES EVENT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the New
Home Sales Event Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the New Residential
Home Sales figure last reported by the Source Agency. The Start Date for the New
Home Sales Event Contracts will be at least two business days prior to the next
Expiration Date. The End Date will be the Last Trading Date.

(c)

SOURCE AGENCY – The Source Agency is the United States Census Bureau.
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(d)

TYPE – The Type of Contract is a Event Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Event Contracts are initially issued. For the New Home Sales EventContract, the Payout Criteria for the Contracts will be set as follows:
(i)

(ii)

WEEKLY NEW HOME SALES EVENT CONTRACTS(1)

At the commencement of trading in a New Home Sales EventContract, Nadex shall list all eligible Payout Criteria in a range offive (5) consecutive increments between 100,000 and 5,000,000, as
determined by Nadex, with contract Payout Criteria of greater than(>) the Expiration Value. For example, Nadex may list the following
range of Payout Criteria (using the 50,000 increment): 650,000,
700,000, 750,000, 800,000, 850,000. For the next issuance, Nadex
may list the following range of Payout Criteria (using a 100,000
increment): 500,000, 600,000, 700,000, 800,000, 900,000.

(2)

In each case above, “X” equals the first Payout Criteria listed. In thefirst example above, this is 650,000; in the second example above,
this is 500,000.

Nadex may list additional New Home Sales Event Contracts with different
ranges of Payout Criteria on a discretionary basis in accordance with the
Census Bureau and Commission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for the New Home Sales Event Contracts
shall be $0.25.

(g)

POSITION LIMIT – There are currently no Position Limits for the New Home Sales
Event Contract.

(h)

LAST TRADING DATE – The Last Trading Date in a Series is the same day as the
Expiration Date. The New Home Sales Event Contracts will stop trading on the Last
Trading Date at 9:55 AM ET.

(i)

SETTLEMENT DATE – The Settlement Date will be the date the New Residential
Home Sales number is released by the Source Agency.

(j)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the New Residential Home Sales number, as reported in the Monthly New
Residential Sales Report, is scheduled to be released.

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(k)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney New Home Sales Event Contract is $100.

(l)

EXPIRATION VALUE – The Expiration Value is the level of the New Home Sales
release number on the Expiration Date. The Expiration Value is released by the
Source Agency at 10:00 AM ET on the Expiration Date.

(m)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
RETAIL SALES CHANGE EVENT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the Retail
Sales Change Event Contract issued by Nadex.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the monthly
percentage increase or decrease in Advance Monthly Sales for Retail and Food
Services figure last reported by the Source Agency. The Start Date for the Retail
Sales Change Event Contracts will be at least two business days prior to the next
Expiration Date. The End Date will be the Last Trading Date.

(c)

SOURCE AGENCY – The Source Agency is the United States Census Bureau.

(d)

TYPE – The Type of Contract is a Event Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by Nadex
at the time the Event Contracts are initially issued. For the Retail Sales Change
Event Contract, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY RETAIL SALES CHANGE EVENT CONTRACTS(1)

At the commencement of trading in a Retail Sales Change EventContract, Nadex shall list all eligible Payout Criteria in a range offive (5) consecutive increments between -5.0% and 5.0%, as
determined by Nadex, with contract Payout Criteria of greater than(>) the Expiration Value. For example, Nadex may list the following
range of Payout Criteria (using the 0.2% increment): -0.5%, -0.3%, 0.1%, 0.1%, 0.3% For the next issuance, Nadex may list the following
range of Payout Criteria (using a 1% increment): 0.0%, 1.0%, 2.0%,
3.0%, 4.0%.

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(2)

(ii)

In each case above, “X” equals the first Payout Criteria listed. In thefirst example above, this is -0.5%; in the second example above, thisis 0.0%.

Nadex may list additional Retail Sales Change Event Contracts withdifferent ranges of Payout Criteria on a discretionary basis in accordancewith the Census Bureau and Commission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for the Retail Sales Change EventContracts shall be $0.25.

(g)

POSITION LIMIT – There are currently no Position Limits for the Retail Sales
Change Event Contract.

(h)

LAST TRADING DATE – The Last Trading Date in a Series is the same day as the
Expiration Date. The Retail Sales Change Event Contracts will stop trading on theLast Trading Date at 8:25 AM ET.

(i)

SETTLEMENT DATE – The Settlement Date will be the date the Advance Monthly
Sales for Retail and Food Services figure is released by the Source Agency.

(j)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Advance Monthly Sales for Retail and Food Services figure, as reported in the
Advance Monthly Sales for Retail and Food Services Report, is scheduled to bereleased.

(k)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on Settlement Date. The Settlement Value of an in themoney Retail Sales Change Event Contract is $100.

(l)

EXPIRATION VALUE – The Expiration Value is the level of the percentage increaseor decrease from the Previous Month in Retail Sales Change release number on
the Expiration Date. The Expiration Value is released by the Source Agency at 8:30
AM ET on the Expiration Date.

(m)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
BITCOIN CRYPTOCURRENCY EVENT CONTRACT(a)317083742.2

SCOPE – These Rules shall apply to the Class of Contracts referred to as the
Bitcoin Cryptocurrency (“Bitcoin” or “BTC”) Event Contracts, referred to as an‘Event Contract”, issued by the Exchange.
317
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(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot bitcoin
cryptocurrency commodity bid/ask midpoint prices as reported by Lukka, Inc. andICE® Cryptocurrency Data108 aggregated by Blockstream® Corporation109 anddistributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “U-BIT”,
quoted in US dollars.

(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is an Event Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Event Contracts are initially issued. For the Bitcoin EventContracts, the Payout Criteria for the Contracts will be set as forth below or as
updated on the Exchange’s Trading System:
(i)

(ii)

DAILY BITCOIN EVENT CONTRACTS(1)

EXPIRATION TIME – 5 PM Saturday thru Thursday; 4 PM Friday.

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be from 150 to 200.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Daily Bitcoin Event Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Event Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 0.25
as reported by the Source Agency. Four (4) strike levels will be
generated above Event Contract X at an interval of Y, and Four (4)strike levels will be generated below Event Contract X at an intervalof Y (e.g. X – Y; X; X + Y). The Contract will have a Payout Criterionof greater than the strike level value.

INTRADAY BITCOIN EVENT CONTRACTS108

ICE® is a registered mark of IntercontinentalExchange, Inc. (“ICE”) and ICE Data® is a registered mark ofIntercontinental Exchange Holdings, Inc (“ICE Holdings”). The Exchange is not affiliated with ICE or ICE Data
Connectivity and Feeds, Inc., and the Bitcoin Cryptocurrency Event Contracts are not sponsored, endorsed, sold or
promoted by ICE or ICE Data Connectivity and Feeds, Inc. in any way.
109 Blockstream® is a registered mark of Blockstream Corporation (“Blockstream”). The Exchange is not affiliated with
Blockstream and the Bitcoin Cryptocurrency Event Contracts are not sponsored, endorsed, sold or promoted by
Blockstream.

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(iii)(1)

EXPIRATION TIME – Every 2 Hours and every 20 minutes with theﬁrst expiration occurring at 1:00 am ET Saturday, and 11:20 pm ET
Friday, respectively, and the ﬁnal expiration occurring the following
Friday at the 4:00 pm ET CLOSE.

(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be from 17 to 100.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday Bitcoin Event Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Event Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.00, 0.01, 0.0025, 0.0050, or 0.0075 as reported by the
Source Agency. Four (4) strike levels will be generated above EventContract Y at an interval of X, and four (4) strike levels will be
generated below Event Contract Y at an interval of X (e.g. Y – X; Y;
Y + X). The Contract will have a Payout Criterion of greater than the
strike level value.

Nadex may list additional Bitcoin Event Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for Bitcoin Event Contracts shall be from
$0.1 to $0.25.

(g)

POSITION LIMIT – The Position Limits for Bitcoin Event Contracts shall be from2,500 to 25,000 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
Bitcoin Event Contracts for contracted Market Makers shall be from 5,000 to
50,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same as the
Expiration Date. No trading in the Bitcoin Event Contracts shall occur after its Last
Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date on which the Bitcoin
price as reported by the Source Agency.
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(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Bitcoin price is released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on the Settlement Date. The Settlement Value of an in
the money Bitcoin Event Contract is from $10 to $100.

(m)

EXPIRATION VALUE – The Expiration Value is the Bitcoin Index Value calculated
and produced by the Source Agency on the Expiration Date. The Source Agency
shall calculate and produce a Bitcoin Index Value once each second throughout
the life of the Bitcoin Event Contracts. That is, each second the Source Agency willcalculate a Bitcoin Index Value by taking by taking all U-BIT midpoints between thebid/ask spread occurring in the sixty (60) seconds leading up to the Calculation
Time, provided at least twenty-five (25) midpoints between the bid/ask spread are
captured during the sixty (60) second period, removing the highest twenty (20)percent of U-BIT midpoints between the bid/ask spread and the lowest twenty (20)percent of U-BIT midpoints between the bid/ask spread from the data set, andusing the remaining U-BIT midpoints between the bid/ask spread to calculate the
Bitcoin Index Value for that second. The calculation used is a simple average ofthe remaining U-BIT midpoints between the bid/ask spread in the data set, rounded
to one decimal point past the precision of the Underlying market. In the event thetime it takes to collect at least twenty-five (25) U-BIT midpoints between thebid/ask spread exceeds the sixty (60) second period, the Bitcoin Index Value will
be calculated by the Source Agency by taking the last twenty-five (25) U-BIT
midpoints between the bid/ask spread just prior to the Calculation Time, removing
the highest five (5) U-BIT midpoints between the bid/ask spread and the lowest
five (5) U-BIT midpoints between the bid/ask spread, and using the remaining
fifteen (15) U-BIT midpoints between the bid/ask spread to calculate the Bitcoin
Index Value. The calculation used is a simple average of all fifteen (15) U-BIT
midpoints between the bid/ask spread, rounded to one decimal point past the
precision of the Underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
ETHER CRYPTOCURRENCY EVENT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the Ether
Cryptocurrency (“Ether” or “ETH”) Event Contracts, referred to as an ‘EventContract”, issued by the Exchange.

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(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot Ether
cryptocurrency commodity bid/ask midpoint prices as reported by Lukka, Inc. andICE® Cryptocurrency Data aggregated by Blockstream® Corporation anddistributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “UETH”, quoted in US dollars.

(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is an Event Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Event Contracts are initially issued. For the Ether EventContracts, the Payout Criteria for the Contracts will be set as forth below or as
updated on the Exchange’s Trading System:
(i)

(ii)

317083742.2

DAILY ETHER EVENT CONTRACTS(1)

EXPIRATION TIME – 5 PM Saturday thru Thursday; 4 PM Friday.

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be from 12 to 30.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Daily Ether Event Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Event Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in 0.25
as reported by the Source Agency. Four (4) strike levels will be
generated above Event Contract X at an interval of Y, and four (4)strike levels will be generated below Event Contract X at an intervalof Y (e.g. X – Y; X; X + Y). The Contract will have a Payout Criterionof greater than the strike level value.

INTRADAY ETHER EVENT CONTRACTS(1)

EXPIRATION TIME – Every 2 Hours and every 20 minutes with theﬁrst expiration occurring at 1:00 am ET Saturday, and 11:20 pm ET
Friday, respectively, and the ﬁnal expiration occurring the following
Friday at the 4:00 pm ET CLOSE.

(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be from 1.3 to 15.
321321

(iii)(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday Ether Event Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Event Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.00, 0.01, 0.0025, 0.0050, 0.0075 as reported by the Source
Agency. Four (4) strike levels will be generated above EventContract Y at an interval of X, and four (4) strike levels will be
generated below Event Contract Y at an interval of X (e.g. Y – X; Y;
Y + X). The Contract will have a Payout Criterion of greater than the
strike level value.

Nadex may list additional Ether Event Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for Ether Event Contracts shall be from
$0.1 to $0.25.

(g)

POSITION LIMIT – The Position Limits for Ether Event Contracts shall be from2,500 to 25,000 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the Ether
Event Contracts for contracted Market Makers shall be from 5,000 to 50,000
Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same as the
Expiration Date. No trading in the Ether Event Contracts shall occur after its Last
Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date on which the Ether
price as reported by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Ether price is released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on the Settlement Date. The Settlement Value of an in
the money Ether Event Contract is from $10 to $100.

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(m)

EXPIRATION VALUE – The Expiration Value is the Ether Index Value calculated andproduced by the Source Agency on the Expiration Date. The Source Agency shallcalculate and produce a Ether Index Value once each second throughout the lifeof the Ether Event Contracts. That is, each second the Source Agency will calculatea Ether Index Value by taking by taking all U-ETH midpoints between the bid/ask
spread occurring in the sixty (60) seconds leading up to the Calculation Time,provided at least twenty-five (25) midpoints between the bid/ask spread are
captured during the sixty (60) second period, removing the highest twenty (20)percent of U-ETH midpoints between the bid/ask spread and the lowest twenty(20) percent of U-ETH midpoints between the bid/ask spread from the data set,
and using the remaining U-ETH midpoints between the bid/ask spread to calculate
the Ether Index Value for that second. The calculation used is a simple average ofthe remaining U-ETH midpoints between the bid/ask spread in the data set,rounded to one decimal point past the precision of the Underlying market. In theevent the time it takes to collect at least twenty-five (25) U-ETH midpoints between
the bid/ask spread exceeds the sixty (60) second period, the Ether Index Value will
be calculated by the Source Agency by taking the last twenty-five (25) U-ETH
midpoints between the bid/ask spread just prior to the Calculation Time, removing
the highest five (5) U-ETH midpoints between the bid/ask spread and the lowest
five (5) U-ETH midpoints between the bid/ask spread, and using the remaining
fifteen (15) U-ETH midpoints between the bid/ask spread to calculate the Ether
Index Value. The calculation used is a simple average of all fifteen (15) U-ETH
midpoints between the bid/ask spread, rounded to one decimal point past the
precision of the Underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
– 12.90 [RESERVED]
LITECOIN (LTC) CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the
LITECOIN (“LTC”) Cryptocurrency Touch Bracket Variable Payout Contracts,
referred to as a “Touch Bracket”, issued by the Exchange.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot LTC
cryptocurrency commodity bid/ask midpoint prices reported by Lukka, Inc. andICE® Cryptocurrency Data, aggregated by Blockstream® Corporation and323
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distributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “ULTC”, quoted in US dollars.
(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Variable Payout Contracts are initially issued. For the LTC
Touch Brackets, the Payout Criteria for the Contracts will be set as follows:
(i)

(ii)

WEEKLY LTC TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Expiration is the earlier of (a) 4:15PM ET on the Last Trade Day of theContract listing, or (b) when the LTC Index Value is equal to or greater thanthe Ceiling, or equal to or less than the Floor. the Exchange shall list a setof four (4) Touch Bracket Variable Payout Contracts, each referred to as a
‘Touch Bracket’, that open at 11:00 PM ET on the first Trade Day of theweek, with overlapping ranges, which conform to the Payout Criteria listed
below.
(1)

CONTRACT 1: The Ceiling shall be X + 4; The Floor shall be X - 1.

(2)

CONTRACT 2: The Ceiling shall be X + 3; The Floor shall be X – 2.

(3)

CONTRACT 3: The Ceiling shall be X + 2; The Floor shall be X - 3.

(4)

CONTRACT 4: The Ceiling shall be X + 1; The Floor shall be X – 4.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1.

(6)

In each case, “X” equals the last U-LTC value, as reported by the
Source Agency, rounded to the nearest 1.

Upon the early Expiration of a Touch Bracket, the Exchange may list a new
Touch Bracket with a Ceiling of X + 4 (or 1) and a Floor of X – 4 (or 1) where
X equals the Ceiling (or Floor) of the Touch Bracket that expired early. The
newly listed Touch Bracket will have the same Last Trade Day as originallyestablished for the expired Touch Bracket and the same Dollar Multiplieras the expired Touch Bracket.

(f)

MINIMUM TICK AND TICK VALUE – The Minimum Tick size for the LTC Touch
Bracket Variable Payout Contracts shall be 0.05 and the Tick Value shall be 1.00.

(g)

POSITION LIMIT – The Position Limit for the LTC Touch Bracket Variable Payout
Contracts shall be 250 Contracts.
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(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the LTC
Touch Bracket Variable Payout Contracts for contracted Market Makers shall be
250,000 Contracts per strike level. Date.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the LTC Touch Bracket Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

LTC INDEX VALUE – The Source Agency shall calculate and produce a LTC Index
Value once each second throughout the life of the LTC Touch Bracket Contracts.
That is, each second the Source Agency will calculate a LTC Index Value by taking
by taking all U-LTC bid/ask midpoint prices occurring in the sixty (60) seconds
leading up to the Calculation Time, provided at least twenty-five (25) bid/ask
midpoint prices are captured during the sixty (60) second period, removing thehighest twenty (20) percent of U-LTC bid/ask midpoint prices and the lowest
twenty (20) percent of U-LTC bid/ask midpoint prices from the data set110, andusing the remaining U-LTC bid/ask midpoint prices to calculate the LTC Index
Value for that second. The calculation used is a simple average of the remaining
U-LTC bid/ask midpoint prices in the data set, rounded to one decimal point past
the precision of the Underlying market. In the event the time it takes to collect atleast twenty-five (25) U-LTC bid/ask midpoint prices exceeds the sixty (60) second
period, the LTC Index Value will be calculated by the Source Agency by taking thelast twenty-five (25) U-LTC bid/ask midpoint prices just prior to the Calculation
Time, removing the highest five (5) U-LTC bid/ask midpoint prices and the lowest
five (5) U-LTC bid/ask midpoint prices, and using the remaining fifteen (15) U-LTC
bid/ask midpoint prices to calculate the LTC Index Value. The calculation used is

110 If 20% of the data set would result in a non-integer number of bid/ask midpoint prices, the number of bid/ask

midpoint prices to be removed from the set will be rounded down. For example, if the number of bid/ask midpoint
prices collected during the last 10 seconds prior to the close of trading was 31, 20% of the data set would be 6.2 bid/ask
midpoint prices. As 6.2 is a non-integer number, the value will be rounded down, and the 6 highest and 6 lowest bid/ask
midpoint prices will be removed from the data set.

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a simple average of all fifteen (15) U-LTC bid/ask midpoint prices, rounded to one
decimal point past the precision of the Underlying market.
(n)

EXPIRATION VALUE – The Expiration Value is the LTC Index Value released by the
Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
DOGECOIN (DOGE) CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the
DOGECOIN (“DOGE”) Cryptocurrency Touch Bracket Variable Payout Contracts,
referred to as a “Touch Bracket”, issued by the Exchange.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot DOGE
cryptocurrency commodity bid/ask midpoint prices reported by Lukka, Inc. andICE® Cryptocurrency Data, aggregated by Blockstream® Corporation anddistributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “UDOGE”, quoted in US dollars.

(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Variable Payout Contracts are initially issued. For the
DOGE Touch Brackets, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY DOGE TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Expiration is the earlier of (a) 4:15PM ET on the Last Trade Day of theContract listing, or (b) when the DOGE Index Value is equal to or greaterthan the Ceiling, or equal to or less than the Floor. the Exchange shall list a
set of four (4) Touch Bracket Variable Payout Contracts, each referred toas a ‘Touch Bracket’, that open at 11:00 PM ET on the first Trade Day of theweek, with overlapping ranges, which conform to the Payout Criteria listed
below.
(1)

CONTRACT 1: The Ceiling shall be X + 0.004; The Floor shall be X –0.001.

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(ii)

(2)

CONTRACT 2: The Ceiling shall be X + 0.003; The Floor shall be X –0.002.

(3)

CONTRACT 3: The Ceiling shall be X + 0.002; The Floor shall be X –0.003.

(4)

CONTRACT 4: The Ceiling shall be X + 0.001; The Floor shall be X –0.004.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1.

(6)

In each case, “X” equals the last U-DOGE value, as reported by the
Source Agency, rounded to the nearest 1.

Upon the early Expiration of a Touch Bracket, the Exchange may list a new
Touch Bracket with a Ceiling of X + 0.004 (or 0.001) and a Floor of X –0.004 (or 0.001) where X equals the Ceiling (or Floor) of the Touch Bracket
that expired early. The newly listed Touch Bracket will have the same Last
Trade Day as originally established for the expired Touch Bracket and thesame Dollar Multiplier as the expired Touch Bracket.

(f)

MINIMUM TICK AND TICK VALUE – The Minimum Tick size for the DOGE Touch
Bracket Variable Payout Contracts shall be 0.00005 and the Tick Value shall be
1.00.

(g)

POSITION LIMIT – The Position Limit for the DOGE Touch Bracket Variable Payout
Contracts shall be 250 Contracts.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
DOGE Touch Bracket Variable Payout Contracts for contracted Market Makers
shall be 250,000 Contracts per strike level. Date.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the DOGE Touch Bracket Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.
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327

(m)

DOGE INDEX VALUE – The Source Agency shall calculate and produce a DOGE
Index Value once each second throughout the life of the DOGE Touch Bracket
Contracts. That is, each second the Source Agency will calculate a DOGE Index
Value by taking by taking all U-DOGE bid/ask midpoint prices occurring in the sixty(60) seconds leading up to the Calculation Time, provided at least twenty-five (25)bid/ask midpoint prices are captured during the sixty (60) second period, removing
the highest twenty (20) percent of U-DOGE bid/ask midpoint prices and the lowest
twenty (20) percent of U-DOGE bid/ask midpoint prices from the data set111, andusing the remaining U-DOGE bid/ask midpoint prices to calculate the DOGE Index
Value for that second. The calculation used is a simple average of the remaining
U-DOGE bid/ask midpoint prices in the data set, rounded to one decimal point past
the precision of the Underlying market. In the event the time it takes to collect atleast twenty-five (25) U-DOGE bid/ask midpoint prices exceeds the sixty (60)second period, the DOGE Index Value will be calculated by the Source Agency bytaking the last twenty-five (25) U-DOGE bid/ask midpoint prices just prior to the
Calculation Time, removing the highest five (5) U-DOGE bid/ask midpoint prices
and the lowest five (5) U-DOGE bid/ask midpoint prices, and using the remaining
fifteen (15) U-DOGE bid/ask midpoint prices to calculate the DOGE Index Value.
The calculation used is a simple average of all fifteen (15) U-DOGE bid/ask
midpoint prices, rounded to one decimal point past the precision of the Underlying
market.

(n)

EXPIRATION VALUE – The Expiration Value is the DOGE Index Value released by
the Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
SHIBA INU (SHIB) CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the
SHIBA INU (SHIB) Cryptocurrency “Touch Bracket” Variable Payout Contracts,
referred to as a ‘Touch Bracket”, issued by the Exchange.

111 If 20% of the data set would result in a non-integer number of bid/ask midpoint prices, the number of bid/ask

midpoint prices to be removed from the set will be rounded down. For example, if the number of bid/ask midpoint
prices collected during the last 10 seconds prior to the close of trading was 31, 20% of the data set would be 6.2 bid/ask
midpoint prices. As 6.2 is a non-integer number, the value will be rounded down, and the 6 highest and 6 lowest bid/ask
midpoint prices will be removed from the data set.

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(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot SHIB
cryptocurrency commodity bid/ask midpoint prices as reported by Lukka, Inc. andthe ICE® Cryptocurrency Data aggregated by Blockstream® Corporation anddistributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “USHIB”, quoted in US dollars.

(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Variable Payout Contracts are initially issued. For the
SHIB Touch Brackets, the Payout Criteria for the Contracts as forth below or as
updated on the Exchange’s Trading System:
(i)

(ii)

317083742.2

WEEKLY SHIB TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Expiration isthe earlier of (a) 4:15PM ET on the Last Trade Day of thecontract listing, or (b) when the SHIB Index Value is equal to or greater thanthe Ceiling, or equal to or less than the Floor. The Exchange shall list a setof four (4) Touch Bracket Variable Payout Contracts, each referred to as a
‘Touch Bracket’, that open at 11:00 PM ET on the ﬁrst Trade Day of theweek, with overlapping ranges, which conform to the Payout Criteria listed
below.
(1)

CONTRACT 1: The Ceiling shall be X + 0.0000008; The Floor shallbe X – 0.0000002.

(2)

CONTRACT 2: The Ceiling shall be X + 0.00000060; The Floor shallbe X – 0.0000004.

(3)

CONTRACT 3: The Ceiling shall be X + 0.0000004; The Floor shallbe X – 0.0000006.

(4)

CONTRACT 4: The Ceiling shall be X + 0.0000002; The Floor shallbe X – 0.0000008.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1.

(6)

In each case, “X” equals the last U-SHIB value, as reported by the
Source Agency, rounded to the nearest 1.

Upon the early Expiration of a Touch Bracket, the Exchange may list a new
Touch Bracket with a Ceiling of X + 0.00000032 (or 0.00000008) and a
Floor of X – 0.00000008 (or 0.00000032) where X equals the Ceiling (orFloor) of the Touch Bracket that expired early. The newly listed Touch
329
329

Bracket will have the same Last Trade Day as originally established for the
expired Touch Bracket and the same Dollar Multiplier as the expired Touch
Bracket.
(f)

MINIMUM TICK –The Minimum Tick size for the SHIB Touch Bracket Variable
Payout Contracts shall be 0.000000004 and the Tick Value shall be 1.00.

(g)

POSITION LIMIT –The Position Limit for the SHIB Touch Bracket Variable Payout
Contracts shall be 250 Contracts.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the SHIB
Touch Bracket Variable Payout Contracts for contracted Market Makers shall be
250,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the SHIB Touch Bracket Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedeﬁnition for Long and Short Variable Payout Contracts.

(m)

SHIB INDEX VALUE – The Source Agency shall calculate and produce an SHIB
Index Value once each second throughout the life of the SHIB Touch Bracket
Contracts. That is, each second the Source Agency will calculate a SHIB Index
Value by taking by taking all U-SHIB bid/ask midpoint prices occurring in the sixty(60) seconds leading up to the Calculation Time, provided at least twenty-ﬁve (25)bid/ask midpoint prices are captured during the sixty (60) second period, removing
the highest twenty (20) percent of U-SHIB bid/ask midpoint prices and the lowest
twenty (20) percent of U-SHIB bid/ask midpoint prices from the data set112, andusing the remaining U-SHIB bid/ask midpoint prices to calculate the SHIB Index
Value for that second. The calculation used is a simple average of the remaining
U-SHIB bid/ask midpoint prices in the data set, rounded to one decimal point past

112 If 20% of the data set would result in a non-integer number of bid/ask midpoint prices, the number of bid/ask

midpoint prices to be removed from the set will be rounded down. For example, if the number of bid/ask midpoint
prices collected during the last 10 seconds prior to the close of trading was 31, 20% of the data set would be 6.2 bid/ask
midpoint prices. As 6.2 is a non-integer number, the value will be rounded down, and the 6 highest and 6 lowest bid/ask
midpoint prices will be removed from the data set.

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the precision of the Underlying market. In the event the time it takes to collect atleast twenty-ﬁve (25) U-SHIB bid/ask midpoint prices exceeds the sixty (60)second period, the SHIB Index Value will be calculated by the Source Agency bytaking the last twenty-ﬁve (25) U-SHIB bid/ask midpoint prices just prior to the
Calculation Time, removing the highest ﬁve (5) U-SHIB bid/ask midpoint prices andthe lowest ﬁve (5) U-SHIB bid/ask midpoint prices, and using the remaining ﬁfteen(15) U-SHIB bid/ask midpoint prices to calculate the SHIB Index Value. The
calculation used is a simple average of all ﬁfteen (15) IU-SHIB bid/ask midpoint
prices, rounded to one decimal point past the precision of the Underlying market.
(n)

EXPIRATION VALUE – The Expiration Value is the SHIB Index Value released by
the Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
BITCOIN CASH (BCH) CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the
Bitcoin Cash (BCH) Cryptocurrency “Touch Bracket” Variable Payout Contracts,
referred to as a ‘Touch Bracket”, issued by the Exchange.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot BCH
cryptocurrency commodity bid/ask midpoint prices as reported by Lukka, Inc. andICE® Cryptocurrency Data aggregated by Blockstream® Corporation anddistributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “UBCH”, quoted in US dollars.

(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Variable Payout Contracts are initially issued. For the
BCH Touch Brackets, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY BCH TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Expiration is the earlier of (a) 4:15 PM ET on the Last Trade Day of thecontract listing, or (b) when the BCH Index Value is equal to or greater thanthe Ceiling, or equal to or less than the Floor. the Exchange shall list a setof four (4) Touch Bracket Variable Payout Contracts, each referred to as a
331

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331‘Touch Bracket’, that open at 11:00 PM ET on the first Trade Day of theweek, with overlapping ranges, which conform to the Payout Criteria listed
below.

(ii)(1)

CONTRACT 1: The Ceiling shall be X + 8; The Floor shall be X – 2.

(2)

CONTRACT 2: The Ceiling shall be X + 6; The Floor shall be X – 4.

(3)

CONTRACT 3: The Ceiling shall be X + 4; The Floor shall be X – 6.

(4)

CONTRACT 4: The Ceiling shall be X + 2; The Floor shall be X – 8(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1.

(6)

In each case, “X” equals the last U-BCH value, as reported by the
Source Agency, rounded to the nearest 1.

Upon the early Expiration of a Touch Bracket, the Exchange may list a new
Touch Bracket with a Ceiling of X + 8 (or 2) and a Floor of X – 2 (or 8) where
X equals the Ceiling (or Floor) of the Touch Bracket that expired early. The
newly listed Touch Bracket will have the same Last Trade Day as originallyestablished for the expired Touch Bracket and the same Dollar Multiplieras the expired Touch Bracket.

(f)

MINIMUM TICK – The Minimum Tick size for the BCH Touch Bracket Variable
Payout Contracts shall be 0.1 and the Tick Value shall be 1.00.

(g)

POSITION LIMIT – The Position Limit for the BCH Touch Bracket Variable Payout
Contracts shall be 250 Contracts.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the BCH
Touch Bracket Variable Payout Contracts for contracted Market Makers shall be
250,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the BCH Touch Bracket Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
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332Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.
(m)

BCH INDEX VALUE – The Source Agency shall calculate and produce a BCH Index
Value once each second throughout the life of the BCH Touch Bracket Contracts.
That is, each second the Source Agency will calculate a BCH Index Value by taking
by taking all U-BCH bid/ask midpoint prices occurring in the sixty (60) seconds
leading up to the Calculation Time, provided at least twenty-five (25) bid/ask
midpoint prices are captured during the sixty (60) second period, removing thehighest twenty (20) percent of U-BCH bid/ask midpoint prices and the lowest
twenty (20) percent of U-BCH bid/ask midpoint prices from the data set113, andusing the remaining U-BCH bid/ask midpoint prices to calculate the BCH Index
Value for that second. The calculation used is a simple average of the remaining
U-BCH bid/ask midpoint prices in the data set , rounded to one decimal point past
the precision of the Underlying market. In the event the time it takes to collect atleast twenty-five (25) U-BCH bid/ask midpoint prices exceeds the sixty (60)second period, the BCH Index Value will be calculated by the Source Agency bytaking the last twenty-five (25) U-BCH bid/ask midpoint prices just prior to the
Calculation Time, removing the highest five (5) U-BCH bid/ask midpoint prices andthe lowest five (5) U-BCH bid/ask midpoint prices, and using the remaining fifteen(15) U-BCH bid/ask midpoint prices to calculate the BCH Index Value. The
calculation used is a simple average of all fifteen (15) U-BCH bid/ask midpoint
prices, rounded to one decimal point past the precision of the Underlying market.

(n)

EXPIRATION VALUE – The Expiration Value is the BCH Index Value released by the
Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
[RESERVED]
XRP (XRP) CRYPTOCURRENCY “TOUCHCONTRACTS

BRACKET”

VARIABLE

PAYOUT

113 If 20% of the data set would result in a non-integer number of bid/ask midpoint prices, the number of bid/ask

midpoint prices to be removed from the set will be rounded down. For example, if the number of bid/ask midpoint
prices collected during the last 10 seconds prior to the close of trading was 31, 20% of the data set would be 6.2 bid/ask
midpoint prices. As 6.2 is a non-integer number, the value will be rounded down, and the 6 highest and 6 lowest bid/ask
midpoint prices will be removed from the data set.

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(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the XRP(XRP) Cryptocurrency “Touch Bracket” Variable Payout Contracts, referred to as a
‘Touch Bracket”, issued by the Exchange.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot XRP
cryptocurrency commodity bid/ask midpoint prices as reported by Lukka, Inc. andICE® Cryptocurrency Data aggregated by Blockstream® Corporation anddistributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “UXRP”, quoted in US dollars.

(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Variable Payout Contracts are initially issued. For the
XRP Touch Brackets, the Payout Criteria for the Contracts will be set as follows:(i)

WEEKLY XRP TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Expiration is the earlier of (a) 4:15PM ET on the Last Trade Day of thecontract listing, or (b) when the XRP Index Value is equal to or greater thanthe Ceiling, or equal to or less than the Floor. the Exchange shall list a setof four (4) Touch Bracket Variable Payout Contracts, each referred to as a
‘Touch Bracket’, that open at 11:00 PM ET on the first Trade Day of theweek, with overlapping ranges, which conform to the Payout Criteria listed
below.
(1)

CONTRACT 1: The Ceiling shall be X + 0.02; The Floor shall be X –0.005.

(2)

CONTRACT 2: The Ceiling shall be X + 0.015; The Floor shall be X –0.010.

(3)

CONTRACT 3: The Ceiling shall be X + 0.01; The Floor shall be X –0.0150.

(4)

CONTRACT 4: The Ceiling shall be X + 0.005; The Floor shall be X –0.020.

(5)

DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1.

(6)

In each case, “X” equals the last U-XRP value, as reported by the
Source Agency, rounded to the nearest 1.

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(ii)

Upon the early Expiration of a Touch Bracket, the Exchange may list a new
Touch Bracket with a Ceiling of X +0.02 (or 0.005)) and a Floor of X- 0.005(or 0.02) where X equals the Ceiling (or Floor) of the Touch Bracket that
expired early. The newly listed Touch Bracket will have the same Last
Trade Day as originally established for the expired Touch Bracket and thesame Dollar Multiplier as the expired Touch Bracket.

(f)

MINIMUM TICK – The Minimum Tick size for the XRP Touch Bracket Variable
Payout Contracts shall be 0.00025 and the Tick Value shall be 1.00.

(g)

POSITION LIMIT – The Position Limit for the XRP Touch Bracket Variable Payout
Contracts shall be 250 Contracts.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the XRP
Touch Bracket Variable Payout Contracts for contracted Market Makers shall be
250,000 Contracts per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the XRP Touch Bracket Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

XRP INDEX VALUE – The Source Agency shall calculate and produce a XRP Index
Value once each second throughout the life of the XRP Touch Bracket Contracts.
That is, each second the Source Agency will calculate a XRP Index Value by taking
by taking all U-XRP bid/ask midpoint prices occurring in the sixty (60) seconds
leading up to the Calculation Time, provided at least twenty-five (25) bid/ask
midpoint prices are captured during the sixty (60) second period, removing thehighest twenty (20) percent of U-XRP bid/ask midpoint prices and the lowest
twenty (20) percent of U-XRP bid/ask midpoint prices from the data set, and using
the remaining U-XRP bid/ask midpoint prices to calculate the XRP Index Value forthat second. The calculation used is a simple average of the remaining U-XRP

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bid/ask midpoint prices in the data set114, rounded to one decimal point past the
precision of the Underlying market. In the event the time it takes to collect at least
twenty-five (25) U-XRP bid/ask midpoint prices exceeds the sixty (60) second
period, the XRP Index Value will be calculated by the Source Agency by taking thelast twenty-five (25) U-XRP bid/ask midpoint prices just prior to the Calculation
Time, removing the highest five (5) U-XRP bid/ask midpoint prices and the lowest
five (5) U-XRP bid/ask midpoint prices, and using the remaining fifteen (15) U-XRP
bid/ask midpoint prices to calculate the XRP Index Value. The calculation used isa simple average of all fifteen (15) U-XRP bid/ask midpoint prices, rounded to one
decimal point past the precision of the Underlying market.
(n)

EXPIRATION VALUE – The Expiration Value is the XRP Index Value released by the
Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
BITCOIN CASH (BCH) CRYPTOCURRENCY EVENT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the
Bitcoin Cash Cryptocurrency (“Bitcoin Cash” or “BCH”) Event Contracts, referred toas an ‘Event Contract”, issued by the Exchange.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot Bitcoin Cashcryptocurrency commodity bid/ask midpoint prices reported by Lukka, Inc. and the
ICE® Cryptocurrency Data aggregated by Blockstream® Corporation anddistributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “UBCH”, quoted in US dollars.

(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is an Event Contract, which is a Swap.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Event Contracts are initially issued. For the Bitcoin Cash

114 If 20% of the data set would result in a non-integer number of bid/ask midpoint prices, the number of bid/ask

midpoint prices to be removed from the set will be rounded down. For example, if the number of bid/ask midpoint
prices collected during the last 10 seconds prior to the close of trading was 31, 20% of the data set would be 6.2 bid/ask
midpoint prices. As 6.2 is a non-integer number, the value will be rounded down, and the 6 highest and 6 lowest bid/ask
midpoint prices will be removed from the data set.

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336Event Contracts, the Payout Criteria for the Contracts will be set as forth below or
as updated on the Exchange’s Trading System:
(i)

(ii)

DAILY BITCOIN CASH EVENT CONTRACTS(1)

EXPIRATION TIME – 5 PM Saturday thru Thursday; 4 PM Friday.

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 2.0.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Daily Bitcoin Cash Event Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Event Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.00, 0.0025, 0.0050, 0.0075 as reported by the Source
Agency. Four (4) strike levels will be generated above EventContract X at an interval of Y, and four (4) strike levels will be
generated below Event Contract X at an interval of Y (e.g. X – Y; X;
X + Y). The Contract will have a Payout Criterion of greater than the
strike level value.

INTRADAY BITCOIN CASH EVENT CONTRACTS(1)

EXPIRATION TIME – Every 2 Hours and every 20 minutes with theﬁrst expiration occurring at 1:00 am ET Saturday, and 11:20 pm ET
Friday, respectively, and the ﬁnal expiration occurring the following
Friday at the 4:00 pm ET CLOSE.

(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.6 for 2-Hour Bitcoin Cash Event Contracts, and 0.24
for 20-minutes Bitcoin Cash Event Contracts.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday 2-Hour Bitcoin Cash Event Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Event Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in
337

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either 0.00, 0.01, 0.0025, 0.0050, 0.0075 as reported by the Source
Agency. Four (4) strike levels will be generated above EventContract X at an interval of Y and four (4) strike levels will be
generated below Event Contract X at an interval of Y(e.g. Y – X; Y; Y
+ X). The Contract will have a Payout Criterion of greater than the
strike level value.
(iii)

Nadex may list additional Bitcoin Cash Event Contracts with different
ranges of Payout Criteria on a discretionary basis in accordance with the
CEA and Commission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for Bitcoin Cash Event Contracts shallbe $0.1.

(g)

POSITION LIMIT – The Position Limits for Bitcoin Cash Event Contracts shall befrom 2,500 to 25,000 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
Bitcoin Cash Event Contracts for contracted Market Makers shall be from 5,000 to
50,000 per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same as the
Expiration Date. No trading in the Bitcoin Cash Event Contracts shall occur after
its Last Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date on which the Bitcoin
Cash price as reported by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Bitcoin Cash price is released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on the Settlement Date. The Settlement Value of an in
the money Bitcoin Cash Event Contract is from $10 to $100.

(m)

EXPIRATION VALUE – The Expiration Value is the Bitcoin Cash Index Value
calculated and produced by the Source Agency on the Expiration Date. The Source
Agency shall calculate and produce an BCH Index Value once each second
throughout the life of the BCH Touch Bracket Contracts. That is, each second the
Source Agency will calculate a BCH Index Value by taking by taking all U-BCH
bid/ask midpoint prices occurring in the sixty (60) seconds leading up to the
Calculation Time, provided at least twenty-five (25) bid/ask midpoint prices arecaptured during the sixty (60) second period, removing the highest twenty (20)percent of U-BCH bid/ask midpoint prices and the lowest twenty (20) percent of U338

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338

BCH bid/ask midpoint prices from the data set115, and using the remaining U-BCH
bid/ask midpoint prices to calculate the BCH Index Value for that second. The
calculation used is a simple average of the remaining U-BCH bid/ask midpoint
prices in the data set, rounded to one decimal point past the precision of theUnderlying market. In the event the time it takes to collect at least twenty-five (25)
U-BCH bid/ask midpoint prices exceeds the sixty (60) second period, the BCH
Index Value will be calculated by the Source Agency by taking the last twenty-five(25) U-BCH bid/ask midpoint prices just prior to the Calculation Time, removing
the highest five (5) U-BCH bid/ask midpoint prices and the lowest five (5) U-BCH
bid/ask midpoint prices, and using the remaining fifteen (15) U-BCH bid/ask
midpoint prices to calculate the BCH Index Value. The calculation used is a simple
average of all fifteen (15) U-BCH bid/ask midpoint prices, rounded to one decimal
point past the precision of the Underlying market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
LITECOIN (LTC) CRYPTOCURRENCY EVENT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the
Litecoin Cryptocurrency (“Litecoin” or “LTC”) Event Contracts, referred to as an‘Event Contract”, issued by the Exchange.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot Litecoin
cryptocurrency commodity bid/ask midpoint prices reported by Lukka, Inc. and the
ICE® Cryptocurrency Data aggregated by Blockstream® Corporation anddistributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “ULTC”, quoted in US dollars.

(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is an Event Contract, which is a Swap.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Event Contracts are initially issued. For the Litecoin Event

115 If 20% of the data set would result in a non-integer number of bid/ask midpoint prices, the number of bid/ask

midpoint prices to be removed from the set will be rounded down. For example, if the number of bid/ask midpoint
prices collected during the last 10 seconds prior to the close of trading was 31, 20% of the data set would be 6.2 bid/ask
midpoint prices. As 6.2 is a non-integer number, the value will be rounded down, and the 6 highest and 6 lowest bid/ask
midpoint prices will be removed from the data set.

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339

Contracts, the Payout Criteria for the Contracts will be set as forth below or as
updated on the Exchange’s Trading System:
(i)

(ii)

DAILY LITECOIN EVENT CONTRACTS(1)

EXPIRATION TIME – 5 PM Saturday thru Thursday; 4 PM Friday.

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.8.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Daily Litecoin Event Contract Series.

(4)

STRIKE LEVELS GENERATED – Strike levels will be generated suchthat Event Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.00, 0.0025, 0.0050, 0.0075 as reported by the Source
Agency. Four (4) strike levels will be generated above EventContract X at an interval of Y,and four (4) strike levels will be
generated below Event Contract X at an interval of Y (e.g. X – Y; X;
X + Y). The Contract will have a Payout Criterion of greater than the
strike level value.

INTRADAY LITECOIN EVENT CONTRACTS(1)

EXPIRATION TIME – Every 2 Hours and every 20 minutes with theﬁrst expiration occurring at 1:00 am ET Saturday, and 11:20 pm ET
Friday, respectively, and the ﬁnal expiration occurring the following
Friday at the 4:00 pm ET CLOSE.

(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.2 for 2-Hour LTC Event Contracts, and 0.085 for 20minutes LTC Event Contracts.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday 2-Hour Litecoin Event Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Event Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in
340

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340

either 0.00, 0.010, .0025, 0.0050, 0.0075 as reported by the Source
Agency. Four (4) strike levels will be generated above EventContract X at an interval of Y, and four (4) strike levels will be
generated below Event Contract X at an interval of Y (e.g. Y – X; Y;
Y + X). The Contract will have a Payout Criterion of greater than the
strike level value.
(iii)

Nadex may list additional Litecoin Event Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for Litecoin Event Contracts shall be$0.1 to $0.25.

(g)

POSITION LIMIT – The Position Limits for Litecoin Event Contracts shall be from2,500 to 25,000 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
Litecoin Event Contracts for contracted Market Makers shall be from 5,000 to
50,000 per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same as the
Expiration Date. No trading in the Litecoin Event Contracts shall occur after its Last
Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date on which the Litecoin
price as reported by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Litecoin price is released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on the Settlement Date. The Settlement Value of an in
the money Litecoin Event Contract is from $10 to $100.

(m)

EXPIRATION VALUE – The Expiration Value is the Litecoin Index Value calculated
and produced by the Source Agency on the Expiration Date. The Source Agency
shall calculate and produce an LTC Index Value once each second throughout thelife of the LTC Touch Bracket Contracts. That is, each second the Source Agency
will calculate a LTC Index Value by taking by taking all U-LTC bid/ask midpoint
prices occurring in the sixty (60) seconds leading up to the Calculation Time,provided at least twenty-ﬁve (25) bid/ask midpoint prices are captured during thesixty (60) second period, removing the highest twenty (20) percent of U-LTC
bid/ask midpoint prices and the lowest twenty (20) percent of U-LTC bid/ask
341

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341midpoint prices from the data set116, and using the remaining U-LTC bid/ask
midpoint prices to calculate the LTC Index Value for that second. The calculation
used is a simple average of the remaining U-LTC bid/ask midpoint prices in thedata set, rounded to one decimal point past the precision of the Underlying market.
In the event the time it takes to collect at least twenty-ﬁve (25) U-LTC bid/ask
midpoint prices exceeds the sixty (60) second period, the LTC Index Value will becalculated by the Source Agency by taking the last twenty-ﬁve (25) U-LTC bid/ask
midpoint prices just prior to the Calculation Time, removing the highest ﬁve (5) ULTC bid/ask midpoint prices and the lowest ﬁve (5) U-LTC bid/ask midpoint prices,and using the remaining ﬁfteen (15) U-LTC bid/ask midpoint prices to calculate
the LTC Index Value. The calculation used is a simple average of all ﬁfteen (15) ULTC bid/ask midpoint prices, rounded to one decimal point past the precision of
the Underlying market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
SHIBA INU (SHIB) CRYPTOCURRENCY EVENT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the Shiba
Inu Cryptocurrency (“Shiba Inu” or “SHIB”) Event Contracts, referred to as an ‘EventContract”, issued by the Exchange.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot Shiba Inu
cryptocurrency commodity bid/ask midpoint prices reported by Lukka, Inc. and the
ICE® Cryptocurrency Data aggregated by Blockstream® Corporation anddistributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “USHIB”, quoted in US dollars.

(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is an Event Contract, which is a Swap.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Event Contracts are initially issued. For the Shiba Inu

116 If 20% of the data set would result in a non-integer number of bid/ask midpoint prices, the number of bid/ask

midpoint prices to be removed from the set will be rounded down. For example, if the number of bid/ask midpoint
prices collected during the last 10 seconds prior to the close of trading was 31, 20% of the data set would be 6.2 bid/ask
midpoint prices. As 6.2 is a non-integer number, the value will be rounded down, and the 6 highest and 6 lowest bid/ask
midpoint prices will be removed from the data set.

342
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342Event Contracts, the Payout Criteria for the Contracts will be set as forth below or
as updated on the Exchange’s Trading System:
(i)

(ii)

DAILY SHIBA INU EVENT CONTRACTS(1)

EXPIRATION TIME – 5 PM Saturday thru Thursday; 4 PM Friday.

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0000001.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Daily Shiba Inu Event Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Event Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.0000000, 0.00000025, 0.000000050, 0.000000075 asreported by the Source Agency. Four (4) strike levels will be
generated above Event Contract X at an interval of Y, and four (4)strike levels will be generated below Event Contract X at an intervalof Y (e.g. X – Y; X; X + Y). The Contract will have a Payout Criterionof greater than the strike level value.

INTRADAY SHIBA INU EVENT CONTRACTS(1)

EXPIRATION TIME – Every 2 Hours and every 20 minutes with thefirst expiration occurring at 1:00 am ET Saturday, and 11:20 pm ET
Friday, respectively, and the final expiration occurring the following
Friday at the 4:00 pm ET CLOSE.

(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 2.5E-08 for 2-Hour Shiba Inu Event Contracts, and1.0E-8 for 20-minutes Shiba Inu Event Contracts.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday 2-Hour Shiba Inu Event Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Event Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in
343

317083742.2

343either 0.0000000, 0.00000001, 0.000000025, 0.000000050,
0.000000075 as reported by the Source Agency. Four (4) strikelevels will be generated above Event Contract X at an interval of Y
and four (4) strike levels will be generated below Event Contract X
at an interval of Y(e.g. Y – X; Y; Y + X). The Contract will have a
Payout Criterion of greater than the strike level value.
(iii)

Nadex may list additional Shiba Inu Event Contracts with different
ranges of Payout Criteria on a discretionary basis in accordance with the
CEA and Commission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for Shiba Inu Event Contracts shall be
$0.1.

(g)

POSITION LIMIT – The Position Limits for Shiba Inu Event Contracts shall be from2,500 to 25,000 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
Shiba Inu Event Contracts for contracted Market Makers shall be from 5,000 to
50,000 per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same as the
Expiration Date. No trading in the Shiba Inu Event Contracts shall occur after its
Last Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date on which the Shiba Inu
price as reported by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Shiba Inu price is released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on the Settlement Date. The Settlement Value of an in
the money Shiba Inu Event Contract is from $10 to $100.

(m)

EXPIRATION VALUE – The Expiration Value is the Shiba Inu Index Value calculated
and produced by the Source Agency on the Expiration Date. The Source Agency
shall calculate and produce a SHIB Index Value once each second throughout thelife of the SHIB Touch Bracket Contracts. That is, each second the Source Agency
will calculate a SHIB Index Value by taking by taking all U-SHIB bid/ask midpoint
prices occurring in the sixty (60) seconds leading up to the Calculation Time,provided at least twenty-five (25) bid/ask midpoint prices are captured during thesixty (60) second period, removing the highest twenty (20) percent of U- SHIB
bid/ask midpoint prices and the lowest twenty (20) percent of U-SHIB bid/ask
344

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344midpoint prices from the data set117, and using the remaining U-SHIB bid/ask
midpoint prices to calculate the SHIB Index Value for that second. The calculation
used is a simple average of the remaining U-SHIB bid/ask midpoint prices in thedata set, rounded to one decimal point past the precision of the Underlying market.
In the event the time it takes to collect at least twenty-five (25) U-SHIB bid/ask
midpoint prices exceeds the sixty (60) second period, the SHIB Index Value will becalculated by the Source Agency by taking the last twenty-five (25) U-SHIB bid/ask
midpoint prices just prior to the Calculation Time, removing the highest five (5) USHIB bid/ask midpoint prices and the lowest five (5) U-SHIB bid/ask midpoint
prices, and using the remaining fifteen (15) U-SHIB bid/ask midpoint prices tocalculate the SHIB Index Value. The calculation used is a simple average of all
fifteen (15) U-SHIB bid/ask midpoint prices, rounded to one decimal point past the
precision of the Underlying market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.

DOGECOIN (DOGE) CRYPTOCURRENCY EVENT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the
Dogecoin Cryptocurrency (“Dogecoin” or “DOGE”) Event Contracts, referred to asan ‘Event Contract”, issued by the Exchange.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot Dogecoin
cryptocurrency commodity bid/ask midpoint prices reported by Lukka, Inc. and the
ICE® Cryptocurrency Data aggregated by Blockstream® Corporation anddistributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “UDOGE”, quoted in US dollars.

(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is an Event Contract, which is a Swap.

117 If 20% of the data set would result in a non-integer number of bid/ask midpoint prices, the number of bid/ask

midpoint prices to be removed from the set will be rounded down. For example, if the number of bid/ask midpoint
prices collected during the last 10 seconds prior to the close of trading was 31, 20% of the data set would be 6.2 bid/ask
midpoint prices. As 6.2 is a non-integer number, the value will be rounded down, and the 6 highest and 6 lowest bid/ask
midpoint prices will be removed from the data set.

345
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345

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Event Contracts are initially issued. For the Dogecoin
Event Contracts, the Payout Criteria for the Contracts will be set as forth below or
as updated on the Exchange’s Trading System:
(i)

(ii)

DAILY Dogecoin EVENT CONTRACTS(1)

EXPIRATION TIME – 5 PM Saturday thru Thursday; 4 PM Friday.

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0006.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Daily Dogecoin Event Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Event Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.0000, 0.000025, 0.000050, 0.000075 as reported by the
Source Agency. Four (4) strike levels will be generated above EventContract X at an interval of Y, and four (4) strike levels will be
generated below Event Contract X at an interval of Y (e.g. X – Y; X; X
+ Y). The Contract will have a Payout Criterion of greater than the
strike level value.

INTRADAY DOGECOIN EVENT CONTRACTS(1)

EXPIRATION TIME – Every 2 Hours and every 20 minutes with thefirst expiration occurring at 1:00 am ET Saturday, and 11:20 pm ET
Friday, respectively, and the final expiration occurring the following
Friday at the 4:00 pm ET CLOSE.

(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.00015 for 2-Hour Dogecoin Event Contracts, and
0.00006 for 20-minutes Dogecoin Event Contracts.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday 2-Hour Dogecoin Event Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Event Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
346

317083742.2

346immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.00000, 0.000001, 0.0000025, 0.0000050, 0.0000075 asreported by the Source Agency. Four (4) strike levels will be
generated above Event Contract X at an interval of Y and four (4)strike levels will be generated below Event Contract X at an intervalof Y(e.g. Y – X; Y; Y + X). The Contract will have a Payout Criterionof greater than the strike level value.
(iii)

Nadex may list additional Dogecoin Event Contracts with different
ranges of Payout Criteria on a discretionary basis in accordance with the
CEA and Commission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for Dogecoin Event Contracts shall be
$0.1.

(g)

POSITION LIMIT – The Position Limits for Dogecoin Event Contracts shall be from2,500 to 25,000 Contracts per Class.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
Dogecoin Event Contracts for contracted Market Makers shall be from 5,000 to
50,000 per strike level.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same as the
Expiration Date. No trading in the Dogecoin Event Contracts shall occur after its
Last Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date on which the Dogecoin
price as reported by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Dogecoin price is released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on the Settlement Date. The Settlement Value of an in
the money Dogecoin Event Contract is from $10 to $100.

(m)

EXPIRATION VALUE – The Expiration Value is the Dogecoin Index Value calculated
and produced by the Source Agency on the Expiration Date. The Source Agency
shall calculate and produce a DOGE Index Value once each second throughout thelife of the DOGE Touch Bracket Contracts. That is, each second the Source Agency
will calculate a DOGE Index Value by taking by taking all U-DOGE bid/ask midpoint
prices occurring in the sixty (60) seconds leading up to the Calculation Time,provided at least twenty-five (25) bid/ask midpoint prices are captured during the347

317083742.2

347sixty (60) second period, removing the highest twenty (20) percent of U- DOGE
bid/ask midpoint prices and the lowest twenty (20) percent of U-DOGE bid/ask
midpoint prices from the data set118, and using the remaining U-DOGE bid/ask
midpoint prices to calculate the DOGE Index Value for that second. The calculation
used is a simple average of the remaining U-DOGE bid/ask midpoint prices in thedata set, rounded to one decimal point past the precision of the Underlying market.
In the event the time it takes to collect at least twenty-five (25) U-DOGE bid/ask
midpoint prices exceeds the sixty (60) second period, the DOGE Index Value will becalculated by the Source Agency by taking the last twenty-five (25) U-DOGE
bid/ask midpoint prices just prior to the Calculation Time, removing the highest five(5) U-DOGE bid/ask midpoint prices and the lowest five (5) U-DOGE bid/ask
midpoint prices, and using the remaining fifteen (15) U-DOGE bid/ask midpoint
prices to calculate the DOGE Index Value. The calculation used is a simple averageof all fifteen (15) U-DOGE bid/ask midpoint prices, rounded to one decimal point
past the precision of the Underlying market.
(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
CHAINLINK (LINK) CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCHAINLINK (LINK) Cryptocurrency “Touch Bracket” Variable Payout Contracts,
referred to as a ‘Touch Bracket”, issued by the Exchange.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot LINK
cryptocurrency commodity bid/ask midpoint prices as reported in the LDF and the
ICE® Cryptocurrency Data aggregated by Blockstream® Corporation anddistributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “ULINK”, quoted in US dollars.

(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

118 If 20% of the data set would result in a non-integer number of bid/ask midpoint prices, the number of bid/ask

midpoint prices to be removed from the set will be rounded down. For example, if the number of bid/ask midpoint
prices collected during the last 10 seconds prior to the close of trading was 31, 20% of the data set would be 6.2 bid/ask
midpoint prices. As 6.2 is a non-integer number, the value will be rounded down, and the 6 highest and 6 lowest bid/ask
midpoint prices will be removed from the data set.

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(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Variable Payout Contracts are initially issued. For the
LINK Touch Brackets, the Payout Criteria for the Contracts as forth below or as
updated on the Exchange’s Trading System:(i)

WEEKLY LINK TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Expiration is the earlier of (a) 4:15PM ET on the Last Trade Day of thecontract listing, or (b) when the LINK Index Value is equal to or greater thanthe Ceiling, or equal to or less than the Floor. the Exchange shall list a set offour (4) Touch Bracket Variable Payout Contracts, each referred to as a
‘Touch Bracket’, that open at 11:00 PM ET on the ﬁrst Trade Day of theweek, with overlapping ranges, which conform to the Payout Criteria listed
below.CONTRACT 1: The Ceiling shall be X + 0.32; The Floor shall be X –0.08. CONTRACT 2: The Ceiling shall be X + 0.24; The Floor shall be X –0.16. CONTRACT 3: The Ceiling shall be X + 0.16; The Floor shall be X –0.24. CONTRACT 4: The Ceiling shall be X + 0.08; The Floor shall be X –0.32. DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1.In each case,“X” equals the last IDCF LINK value, as reported by the Source Agency,
rounded to the nearest 1.

(ii)

Upon the early Expiration of a Touch Bracket, the Exchange may list a new
Touch Bracket with a Ceiling of X +0.08 (or 0.32)) and a Floor of X- 0.08 (or0.32) where X equals the Ceiling (or Floor) of the Touch Bracket that
expired early. The newly listed Touch Bracket will have the same Last Trade
Day as originally established for the expired Touch Bracket and the same
Dollar Multiplier as the expired Touch Bracket.

(f)

MINIMUM TICK –The Minimum Tick size for the LINK Touch Bracket Variable
Payout Contracts shall be 0.004 and the Tick Value shall be 1.00.

(g)

POSITION LIMIT –The Position Limit for the LINK Touch Bracket Variable Payout
Contracts shall be 250 Contracts, or as updated on the Exchange’s website or
Trading System.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the LINK
Touch Bracket Variable Payout Contracts for contracted Market Makers shall be
250,000 Contracts per strike level, or as updated on the Exchange’s website or
Trading System.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.
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(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on which
the LINK Touch Bracket Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedeﬁnition for Long and Short Variable Payout Contracts.

(m)

LINK INDEX VALUE – The Source Agency shall calculate and produce a LINK Index
Value once each second throughout the life of the LINK Touch Bracket Contracts.
That is, each second the Source Agency will calculate a LINK Index Value by taking
by taking all IDCF LINK bid/ask midpoint prices occurring in the sixty (60) seconds
leading up to the Calculation Time, provided at least twenty-ﬁve (25) bid/ask
midpoint prices are captured during the sixty (60) second period, removing thehighest twenty (20) percent of IDCF LINK bid/ask midpoint prices and the lowest
twenty (20) percent of IDCF LINK bid/ask midpoint prices from the data set119, andusing the remaining IDCF LINK bid/ask midpoint prices to calculate the LINK Index
Value for that second. The calculation used is a simple average of the remaining
IDCF LINK bid/ask midpoint prices in the data set, rounded to one decimal point
past the precision of the Underlying market. In the event the time it takes to collectat least twenty-ﬁve (25) IDCF LINK bid/ask midpoint prices exceeds the sixty (60)second period, the LINK Index Value will be calculated by the Source Agency bytaking the last twenty-ﬁve (25) IDCF LINK bid/ask midpoint prices just prior to the
Calculation Time, removing the highest ﬁve (5) IDCF LINK bid/ask midpoint prices
and the lowest ﬁve (5) IDCF LINK bid/ask midpoint prices, and using the remaining
ﬁfteen (15) IDCF LINK bid/ask midpoint prices to calculate the LINK Index Value.
The calculation used is a simple average of all ﬁfteen (15) IDCF LINK bid/ask
midpoint prices, rounded to one decimal point past the precision of theUnderlying market.

(n)

EXPIRATION VALUE – The Expiration Value is the LINK Index Value released by the
Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.

119 If 20% of the data set would result in a non-integer number of bid/ask midpoint prices, the number of bid/ask

midpoint prices to be removed from the set will be rounded down. For example, if the number of bid/ask midpoint
prices collected during the last 10

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AVALANCHE (AVAX)PAYOUT CONTRACTS

CRYPTOCURRENCY“TOUCH

BRACKET”

VARIABLE(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the
AVALANCHE (AVAX) Cryptocurrency “Touch Bracket” Variable Payout Contracts,
referred to as a ‘Touch Bracket”, issued by the Exchange.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot AVAX
cryptocurrency commodity bid/ask midpoint prices as reported in the LDF and the
ICE® Cryptocurrency Data aggregated by Blockstream® Corporation anddistributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “UAVAX”, quoted in US dollars.

(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Variable Payout Contracts are initially issued. For the
AVAX Touch Brackets, the Payout Criteria for the Contracts as forth below or as
updated on the Exchange’s Trading System:(i)

WEEKLY AVAX TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Expiration is the earlier of (a) 4:15PM ET on the Last Trade Day of thecontract listing, or (b) when the AVAX Index Value is equal to or greaterthan the Ceiling, or equal to or less than the Floor. the Exchange shall list a
set of four (4) Touch Bracket Variable Payout Contracts, each referred toas a ‘Touch Bracket’, that open at 11:00 PM ET on the ﬁrst Trade Day of theweek, with overlapping ranges, which conform to the Payout Criteria listed
below. CONTRACT 1: The Ceiling shall be X + 0.4; The Floor shall be X –0.1.
CONTRACT 2: The Ceiling shall be X + 0.3; The Floor shall be X – 0.2.
CONTRACT 3: The Ceiling shall be X + 0.2; The Floor shall be X – 0.3.
CONTRACT 4: The Ceiling shall be X + 0.1; The Floor shall be X – 0.4.
DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1. In each case, “X”
equals the last U-AVAX value, as reported by the Source Agency, rounded
to the nearest 1.

(ii)

Upon the early Expiration of a Touch Bracket, the Exchange may list a new
Touch Bracket with a Ceiling of X +0.4 (or 0.1)) and a Floor of X- 0.1 (or 0.4)
where X equals the Ceiling (or Floor) of the Touch Bracket that expired early.
The newly listed Touch Bracket will have the same Last Trade Day as
originally established for the expired Touch Bracket and the same Dollar
Multiplier as the expired Touch Bracket.
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(f)

MINIMUM TICK –The Minimum Tick size for the AVAX Touch Bracket Variable
Payout Contracts shall be 0.005 and the Tick Value shall be 1.00.

(g)

POSITION LIMIT –The Position Limit for the AVAX Touch Bracket Variable Payout
Contracts shall be 250 Contracts, or as updated on the Exchange’s website or
Trading System.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
AVAX Touch Bracket Variable Payout Contracts for contracted Market Makers
shall be 250,000 Contracts per strike level, or as updated on the Exchange’s
website or Trading System.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on which
the AVAX Touch Bracket Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedeﬁnition for Long and Short Variable Payout Contracts.

(m)

AVAX INDEX VALUE – The Source Agency shall calculate and produce an AVAX
Index Value once each second throughout the life of the AVAX Touch Bracket
Contracts. That is, each second the Source Agency will calculate a AVAX Index
Value by taking by taking all U-AVAX bid/ask midpoint prices occurring in the sixty(60) seconds leading up to the Calculation Time, provided at least twenty-ﬁve (25)bid/ask midpoint prices are captured during the sixty (60) second period, removing
the highest twenty (20) percent of U-AVAX bid/ask midpoint prices and the lowest
twenty (20) percent of U-AVAX bid/ask midpoint prices from the data set120, andusing the remaining U-AVAX bid/ask midpoint prices to calculate the AVAX Index
Value for that second. The calculation used is a simple average of the remaining
U-AVAX bid/ask midpoint prices in the data set, rounded to one decimal point past
the precision of the Underlying market. In the event the time it takes to collect atleast twenty-ﬁve (25) U-AVAX bid/ask midpoint prices exceeds the sixty (60) second120

If 20% of the data set would result in a non-integer number of bid/ask midpoint prices, the number of bid/ask
midpoint prices to be removed from the set will be rounded down. For example, if the number of bid/ask midpoint
prices collected during the last 10 seconds prior to the close of trading was 31, 20% of the data set would be 6.2 bid/ask
midpoint prices. As 6.2 is a non-integer number, the value will be rounded down, and the 6 highest and 6 lowest bid/ask
midpoint prices will be removed from the data set.

352
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period, the AVAX Index Value will be calculated by the Source Agency by taking thelast twenty-ﬁve (25) U-AVAX bid/ask midpoint prices just prior to the Calculation
Time, removing the highest ﬁve (5) U-AVAX bid/ask midpoint prices and the lowest
ﬁve (5) U-AVAX bid/ask midpoint prices, and using the remaining ﬁfteen (15) UAVAX bid/ask midpoint prices to calculate the AVAX Index Value. The calculation
used is a simple average of all ﬁfteen (15) IU-AVAX bid/ask midpoint prices,rounded to one decimal point past the precision of the Underlying market.
(n)

EXPIRATION VALUE – The Expiration Value is the AVAX Index Value released by the
Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
POLKADOT (DOT) CRYPTOCURRENCYVARIABLE PAYOUT CONTRACTS“TOUCH

BRACKET”(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the
Polkadot (DOT) Cryptocurrency “Touch Bracket” Variable Payout Contracts,
referred to as a ‘Touch Bracket”, issued by the Exchange.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot DOT
cryptocurrency commodity bid/ask midpoint prices as reported in the LDF and the
ICE® Cryptocurrency Data aggregated by Blockstream® Corporation anddistributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “UDOT”, quoted in US dollars.

(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Variable Payout Contracts are initially issued. For the
DOT Touch Brackets, the Payout Criteria for the Contracts as forth below or as
updated on the Exchange’s Trading System:(i)

WEEKLY DOT TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Expiration is the earlier of (a) 4:15PM ET on the Last Trade Day of thecontract listing, or (b) when the DOT Index Value is equal to or greater thanthe Ceiling, or equal to or less than the Floor. the Exchange shall list a set offour (4) Touch Bracket Variable Payout Contracts, each referred to as a
‘Touch Bracket’, that open at 11:00 PM ET on the ﬁrst Trade Day of the353

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353

week, with overlapping ranges, which conform to the Payout Criteria listed
below. CONTRACT 1: The Ceiling shall be X + 0.16; The Floor shall be X –0.04. CONTRACT 2: The Ceiling shall be X + 0.12; The Floor shall be X –0.08. CONTRACT 3: The Ceiling shall be X + 0.08; The Floor shall be X –0.12. CONTRACT 4: The Ceiling shall be X + 0.04; The Floor shall be X –0.16. DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1. In each case,“X” equals the last U-DOT value, as reported by the Source Agency, rounded
to the nearest 1.
(ii)

Upon the early Expiration of a Touch Bracket, the Exchange may list a new
Touch Bracket with a Ceiling of X +0.16 (or 0.04)) and a Floor of X- 0.04 (or0.16) where X equals the Ceiling (or Floor) of the Touch Bracket that
expired early. The newly listed Touch Bracket will have the same Last Trade
Day as originally established for the expired Touch Bracket and the same
Dollar Multiplier as the expired Touch Bracket.

(f)

MINIMUM TICK –The Minimum Tick size for the DOT Touch Bracket Variable
Payout Contracts shall be 0.002 and the Tick Value shall be 1.00.

(g)

POSITION LIMIT –The Position Limit for the DOT Touch Bracket Variable Payout
Contracts shall be 250 Contracts, or as updated on the Exchange’s website or
Trading System.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the DOT
Touch Bracket Variable Payout Contracts for contracted Market Makers shall be
250,000 Contracts per strike level, or as updated on the Exchange’s website or
Trading System.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on which
the DOT Touch Bracket Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedeﬁnition for Long and Short Variable Payout Contracts.

(m)

DOT INDEX VALUE – The Source Agency shall calculate and produce an DOT Index
Value once each second throughout the life of the DOT Touch Bracket Contracts.
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That is, each second the Source Agency will calculate a DOT Index Value by taking
by taking all U-DOT bid/ask midpoint prices occurring in the sixty (60) seconds
leading up to the Calculation Time, provided at least twenty-ﬁve (25) bid/ask
midpoint prices are captured during the sixty (60) second period, removing thehighest twenty (20) percent of U-DOT bid/ask midpoint prices and the lowest
twenty (20) percent of U-DOT bid/ask midpoint prices from the data set121, andusing the remaining U-DOT bid/ask midpoint prices to calculate the DOT Index
Value for that second. The calculation used is a simple average of the remaining
U-DOT bid/ask midpoint prices in the data set, rounded to one decimal point past
the precision of the Underlying market. In the event the time it takes to collect atleast twenty-ﬁve (25) U-DOT bid/ask midpoint prices exceeds the sixty (60) second
period, the DOT Index Value will be calculated by the Source Agency by taking thelast twenty-ﬁve (25) U-DOT bid/ask midpoint prices just prior to the Calculation
Time, removing the highest ﬁve (5) U-DOT bid/ask midpoint prices and the lowest
ﬁve (5) U- DOT bid/ask midpoint prices, and using the remaining ﬁfteen (15) U-DOT
bid/ask midpoint prices to calculate the DOT Index Value. The calculation used is a
simple average of all ﬁfteen (15) IU-DOT bid/ask midpoint prices, rounded to one
decimal point past the precision of the Underlying market.
(n)

EXPIRATION VALUE – The Expiration Value is the DOT Index Value released by the
Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
POLKADOT (DOT) CRYPTOCURRENCY EVENT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the
Polkadot Cryptocurrency (“Polkadot” or “DOT”) Event Contracts, referred to as an‘Event Contract”, issued by the Exchange.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot Polkadot
cryptocurrency commodity bid/ask midpoint prices reported by Lukka, Inc. and the
ICE® Cryptocurrency Data aggregated by Blockstream® Corporation and

121 If 20% of the data set would result in a non-integer number of bid/ask midpoint prices, the number of bid/ask

midpoint prices to be removed from the set will be rounded down. For example, if the number of bid/ask midpoint
prices collected during the last 10 seconds prior to the close of trading was 31, 20% of the data set would be 6.2 bid/ask
midpoint prices. As 6.2 is a non-integer number, the value will be rounded down, and the 6 highest and 6 lowest bid/ask
midpoint prices will be removed from the data set.

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distributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “UDOT”, quoted in US dollars.
(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is an Event Contract, which is a Swap.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Event Contracts are initially issued. For the Polkadot
Event Contracts, the Payout Criteria for the Contracts will be set as forth below or
as updated on the Exchange’s Trading System:
(i)

(ii)

DAILY POLKADOT EVENT CONTRACTS(1)

EXPIRATION TIME – 5 PM Saturday thru Thursday; 4 PM Friday.

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.03.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Daily Polkadot Event Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Event Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending in either
0.00, 0.0025, 0.0050, 0.0075 as reported by the Source Agency.
Four (4) strike levels will be generated above Event Contract X at aninterval of Y, and four (4) strike levels will be generated below EventContract X at an interval of Y (e.g. X – Y; X; X + Y). The Contract will
have a Payout Criterion of greater than the strike level value.

INTRADAY POLKADOT EVENT CONTRACTS(1)

EXPIRATION TIME – Every 2 Hours and every 20 minutes with theﬁrst expiration occurring at 1:00 am ET Saturday, and 11:20 pm ET
Friday, respectively, and the ﬁnal expiration occurring the following
Friday at the 4:00 pm ET CLOSE.

(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.008 for 2-Hour Polkadot Event Contracts, and 0.003
for 20-minutes Polkadot Event Contracts.

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(iii)(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday 2-Hour Polkadot Event Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Event Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.00, 0.01, 0.0025, 0.0050, 0.0075 as reported by the Source
Agency. Four (4) strike levels will be generated above EventContract X at an interval of Y and four (4) strike levels will be
generated below Event Contract X at an interval of Y (e.g. Y – X; Y; Y
+ X). The Contract will have a Payout Criterion of greater than the
strike level value.

Nadex may list additional Polkadot Event Contracts with different ranges
of Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for Polkadot Event Contracts shall be
$0.1.

(g)

POSITION LIMIT – The Position Limits for Polkadot Event Contracts shall be from2,500 to 25,000 Contracts per Class, or as updated on the Exchange’s website or
Trading System.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
Polkadot Event Contracts for contracted Market Makers shall be from 5,000 to
50,000 per strike level, or as updated on the Exchange’s website or Trading System.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same as the
Expiration Date. No trading in the Polkadot Event Contracts shall occur after its
Last Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date on which the Polkadot
price as reported by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Polkadot price is released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on the Settlement Date. The Settlement Value of an in
the money Polkadot Event Contract is from $10 to $100.
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(m)

EXPIRATION VALUE – The Expiration Value is the Polkadot Index Value calculated
and produced by the Source Agency on the Expiration Date. The Source Agency
shall calculate and produce a DOT Index Value once each second throughout thelife of the DOT Touch Bracket Contracts. That is, each second the Source Agency
will calculate a DOT Index Value by taking by taking all U-DOT bid/ask midpoint
prices occurring in the sixty (60) seconds leading up to the Calculation Time,provided at least twenty-ﬁve (25) bid/ask midpoint prices are captured during thesixty (60) second period, removing the highest twenty (20) percent of U- DOT
bid/ask midpoint prices and the lowest twenty (20) percent of U-DOT bid/ask
midpoint prices from the data set122, and using the remaining U-DOT bid/ask
midpoint prices to calculate the DOT Index Value for that second. The calculation
used is a simple average of the remaining U-DOT bid/ask midpoint prices in the dataset, rounded to one decimal point past the precision of the Underlying market. In
the event the time it takes to collect at least twenty-ﬁve (25) U-DOT bid/ask
midpoint prices exceeds the sixty (60) second period, the DOT Index Value will becalculated by the Source Agency by taking the last twenty-ﬁve (25) U-DOT bid/ask
midpoint prices just prior to the Calculation Time, removing the highest ﬁve (5) UDOT bid/ask midpoint prices and the lowest ﬁve (5) U- DOT bid/ask midpoint
prices, and using the remaining ﬁfteen (15) U-DOT bid/ask midpoint prices tocalculate the DOT Index Value. The calculation used is a simple average of all ﬁfteen(15) U-DOT bid/ask midpoint prices, rounded to one decimal point past the
precision of the Underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
AVALANCHE (AVAX) CRYPTOCURRENCY EVENT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the
Avalanche Cryptocurrency (“Avalanche” or “AVAX”) Event Contracts, referred to asan ‘Event Contract”, issued by the Exchange.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot Avalanche
cryptocurrency commodity bid/ask midpoint prices reported by Lukka, Inc. and the
ICE® Cryptocurrency Data aggregated by Blockstream® Corporation and

122 If 20% of the data set would result in a non-integer number of bid/ask midpoint prices, the number of bid/ask

midpoint prices to be removed from the set will be rounded down. For example, if the number of bid/ask midpoint
prices collected during the last 10 seconds prior to the close of trading was 31, 20% of the data set would be 6.2 bid/ask
midpoint prices. As 6.2 is a non-integer number, the value will be rounded down, and the 6 highest and 6 lowest bid/ask
midpoint prices will be removed from the data set.

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distributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “UAVAX”, quoted in US dollars.
(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is an Event Contract, which is a Swap.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Event Contracts are initially issued. For the Avalanche
Event Contracts, the Payout Criteria for the Contracts will be set as forth below or
as updated on the Exchange’s Trading System:
(i)

(ii)

DAILY AVALANCHE EVENT CONTRACTS(1)

EXPIRATION TIME – 5 PM Saturday thru Thursday; 4 PM Friday.

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.01.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Daily Avalanche Event Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Event Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.00, 0.025, 0.050, 0.075 as reported by the Source Agency.
Four(4) strike levels will be generated above Event Contract X at aninterval of Y, and four (4) strike levels will be generated below EventContract X at an interval of Y (e.g. X – Y; X; X + Y). The Contract will
have a Payout Criterion of greater than the strike level value.

INTRADAY AVALANCHE EVENT CONTRACTS(1)

EXPIRATION TIME – Every 2 Hours and every 20 minutes with theﬁrst expiration occurring at 1:00 am ET Saturday, and 11:20 pm ET
Friday, respectively, andthe ﬁnal expiration occurring the following
Friday at the 4:00 pm ET CLOSE.

(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.025 for 2-Hour Avalanche Event Contracts, and 0.01
for 20-minutes Avalanche Event Contracts.

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(iii)(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday 2-Hour and 20-minutes Avalanche EventContract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Event Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.00, 0.01, 0.0025, 0.0050, 0.0075 as reported by the Source
Agency. Four (4) strike levels will be generated above EventContract X at an interval of Y and four (4) strike levels will be
generated below Event Contract X at an interval of Y(e.g. Y – X; Y; Y
+ X). The Contract will have a Payout Criterion of greater than the
strike level value.

Nadex may list additional Avalanche Event Contracts with different ranges
of Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for Avalanche Event Contracts shall be
$0.1.

(g)

POSITION LIMIT – The Position Limits for Avalanche Event Contracts shall be from2,500 to 25,000 Contracts per Class, or as updated on the Exchange’s website or
Trading System.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
Avalanche Event Contracts for contracted Market Makers shall be from 5,000 to
50,000 per strike level, or as updated on the Exchange’s website or Trading System.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same as the
Expiration Date. No trading in the Avalanche Event Contracts shall occur after its
Last Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date on which the
Avalanche price as reported by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Avalanche price is released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on the Settlement Date. The Settlement Value of an in
the money Avalanche Event Contract is from $10 to $100.
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(m)

EXPIRATION VALUE – The Expiration Value is the Avalanche Index Value
calculated and produced by the Source Agency on the Expiration Date. The Source
Agency shall calculate and produce an AVAX Index Value once each second
throughout the life of the AVAX Touch Bracket Contracts. That is, each second the
Source Agency will calculate a AVAX Index Value by taking by taking all U-AVAX
bid/ask midpoint prices occurring in the sixty (60) seconds leading up to the
Calculation Time, provided at least twenty-ﬁve (25) bid/ask midpoint prices arecaptured during the sixty (60) second period, removing the highest twenty (20)percent of U- AVAX bid/ask midpoint prices and the lowest twenty (20) percent of
U-AVAX bid/ask midpoint prices from the data set123, and using the remaining UAVAX bid/ask midpoint prices to calculate the AVAX Index Value for that second.
The calculation used is a simple average of the remaining U-AVAX bid/ask
midpoint prices in the data set, rounded to one decimal point past the precision of
the Underlying market. In the event the time it takes to collect at least twenty-ﬁve(25) U-AVAX bid/ask midpoint prices exceeds the sixty (60) second period, theAVAX Index Value will be calculated by the Source Agency by taking the lasttwenty-ﬁve (25) U-AVAX bid/ask midpoint prices just prior to the Calculation Time,removing the highest ﬁve (5) U-AVAX bid/ask midpoint prices and the lowest ﬁve(5) U-AVAX bid/ask midpoint prices, and using the remaining ﬁfteen (15) U-AVAX
bid/ask midpoint prices to calculate the AVAX Index Value. The calculation used
is a simple average of all ﬁfteen (15) U-AVAX bid/ask midpoint prices, rounded to
one decimal point past the precision of the Underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date
due to a delay, postponement or otherwise in such release announcementby the Source Agency, the Settlement Date will be delayed until theUnderlying number is released for that Series.
CHAINLINK (LINK) CRYPTOCURRENCY EVENT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theCHAINLINK Cryptocurrency (“CHAINLINK” or “LINK”) Event Contracts, referred toas an ‘Event Contract”, issued by the Exchange.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot CHAINLINK
cryptocurrency commodity bid/ask midpoint prices reported by Lukka, Inc. and the
ICE® Cryptocurrency Data aggregated by Blockstream® Corporation and

123 If 20% of the data set would result in a non-integer number of bid/ask midpoint prices, the number of bid/ask

midpoint prices to be removed from the set will be rounded down. For example, if the number of bid/ask midpoint
prices collected during the last 10 seconds prior to the close of trading was 31, 20% of the data set would be 6.2 bid/ask
midpoint prices. As 6.2 is a non-integer number, the value will be rounded down, and the 6 highest and 6 lowest bid/ask
midpoint prices will be removed from the data set.

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distributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “ULINK”, quoted in US dollars.
(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is an Event Contract, which is a Swap.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Event Contracts are initially issued. For the CHAINLINKEvent Contracts, the Payout Criteria for the Contracts will be set as forth below or
as updated on the Exchange’s Trading System:
(i)

(ii)

DAILY CHAINLINK EVENT CONTRACTS(1)

EXPIRATION TIME – 5 PM Saturday thru Thursday; 4 PM
Friday.

(2)

STRIKE INTERVAL WIDTH – The interval width between eachstrike level shall be 0.08.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels
will be listed for each Daily CHAINLINK Event Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated
such that Event Contract “X” is valued ‘at-the-money’ inrelation to the Underlying market as determined by the Source
Agency, immediately before the issuance of these Contracts,
and shall be measured in U.S. cents rounded to the nearest
value ending in either 0.00, 0.0025, 0.0050, 0.0075 as reportedby the Source Agency. Four (4) strike levels will be generated
above Event Contract X at an interval of Y, and four (4) strikelevels will be generated below Event Contract X at an intervalof Y (e.g. X – Y; X; X + Y). The Contract will have a Payout
Criterion of greater than the strike level value.

INTRADAY CHAINLINK EVENT CONTRACTS(1)

EXPIRATION TIME – Every 2 Hours and every 20 minutes withthe ﬁrst expiration occurring at 1:00 am ET Saturday, and11:20 pm ET Friday, respectively, and the ﬁnal expiration
occurring the following Friday at the 4:00 pm ET CLOSE.

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(iii)(2)

STRIKE INTERVAL WIDTH – The interval width between eachstrike level shall be 0.02 for 2-Hour CHAINLINK EventContracts, and 0.008 for 20-minutes CHAINLINK EventContracts.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels
will be listed for each Intraday 2-Hour and 20-minutes
CHAINLINK Event Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated
such that Event Contract “Y” is valued ‘at-the-money’ inrelation to the Underlying market as determined by the Source
Agency, immediately before the issuance of these Contracts,
and shall be measured in U.S. cents rounded to the nearest
value ending in either 0.000, 0.001, 0.00025, 0.00050, 0.00075
as reported by the Source Agency. Four (4) strike levels will be
generated above Event Contract X at an interval of Y and four(4) strike levels will be generated below Event Contract X at
an interval of Y(e.g. Y – X; Y; Y + X). The Contract will have a
Payout Criterion of greater than the strike level value.

Nadex may list additional CHAINLINK Event Contracts with different ranges
of Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for CHAINLINK Event Contracts
shall be $0.1.

(g)

POSITION LIMIT – The Position Limits for CHAINLINK Event Contracts shallbe from 2,500 to 25,000 Contracts per Class, or as updated on the
Exchange’s website or Trading System.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit
for the CHAINLINK Event Contracts for contracted Market Makers shall be from
5,000 to 50,000 per strike level, or as updated on the Exchange’s website or Trading
System.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same as the
Expiration Date. No trading in the CHAINLINK Event Contracts shall occur
after its Last Trading Date.
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(j)

SETTLEMENT DATE – The Settlement Date will be the date on which the
CHAINLINK price as reported by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the CHAINLINK price is released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on the Settlement Date. The Settlement Value of an in
the money CHAINLINK Event Contract is from $10 to $100.

(m)

EXPIRATION VALUE – The Expiration Value is the CHAINLINK Index Value
calculated and produced by the Source Agency on the Expiration Date. The Source
Agency shall calculate and produce an LINK Index Value once each second
throughout the life of the LINK Touch Bracket Contracts. That is, each second the
Source Agency will calculate a LINK Index Value by taking by taking all U-LINK
bid/ask midpoint prices occurring in the sixty (60) seconds leading up to the
Calculation Time, provided at least twenty-ﬁve (25) bid/ask midpoint prices arecaptured during the sixty (60) second period, removing the highest twenty (20)percent of U- LINK bid/ask midpoint prices and the lowest twenty (20) percent of
U-LINK bid/ask midpoint prices from the data set14, and using the remaining ULINK bid/ask midpoint prices to calculate the LINK Index Value for that second.
The calculation used is a simple average of the remaining U-LINK bid/ask midpoint
prices in the data set, rounded to one decimal point past the precision of theUnderlying market. In the event the time it takes to collect at least twenty-ﬁve (25)
U-LINK bid/ask midpoint prices exceeds the sixty (60) second period, the LINK
Index Value will be calculated by the Source Agency by taking the last twenty-ﬁve(25) U-LINK bid/ask midpoint prices just prior to the Calculation Time, removing
the highest ﬁve (5) U-LINK bid/ask midpoint prices and the lowest ﬁve (5) U-LINK
bid/ask midpoint prices, and using the remaining ﬁfteen (15) U-LINK bid/ask
midpoint prices to calculate the LINK Index Value. The calculation used is a simple
average of all ﬁfteen (15) U-LINK bid/ask midpoint prices, rounded to one decimal
point past the precision of the Underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
STELLAR (XLM) CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE PAYOUT
CONTRACTS(a)317083742.2

SCOPE – These Rules shall apply to the Class of Contracts referred to as the
STELLAR (XLM) Cryptocurrency “Touch Bracket” Variable Payout Contracts,
referred to as a ‘Touch Bracket”, issued by the Exchange.
364
364

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot XLM
cryptocurrency commodity bid/ask midpoint prices as reported in the LDF and the
ICE® Cryptocurrency Data aggregated by Blockstream® Corporation anddistributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “UXLM”, quoted in US dollars.

(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Variable Payout Contracts are initially issued. For the XLMTouch Brackets, the Payout Criteria for the Contracts as forth below or as updated
on the Exchange’s Trading System:(i)

WEEKLY XLM TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Expiration is the earlier of (a) 4:15PM ET on the Last Trade Day of thecontract listing, or (b) when the XLM Index Value is equal to or greater thanthe Ceiling, or equal to or less than the Floor. the Exchange shall list a setof four (4) Touch Bracket Variable Payout Contracts, each referred to as a
‘Touch Bracket’, that open at 11:00 PM ET on the ﬁrst Trade Day of theweek, with overlapping ranges, which conform to the Payout Criteria listed
below.
CONTRACT 1: The Ceiling shall be X + 0.004; The Floor shall be X –0.001.
CONTRACT 2: The Ceiling shall be X + 0.003; The Floor shall be X –0.002.
CONTRACT 3: The Ceiling shall be X + 0.002; The Floor shall be X –0.003.
CONTRACT 4: The Ceiling shall be X + 0.001; The Floor shall be X –0.004.
DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1.

In each case, “X” equals the last U-XLM value, as reported by the Source Agency,
rounded to the nearest 1.
(ii)

Upon the early Expiration of a Touch Bracket, the Exchange may list a new
Touch Bracket with a Ceiling of X +0.004 (or 0.001)) and a Floor of X- 0.001(or 0.004) where X equals the Ceiling (or Floor) of the Touch Bracket that365

317083742.2

365expired early. The newly listed Touch Bracket will have the same Last Trade
Day as originally established for the expired Touch Bracket and the same
Dollar Multiplier as the expired Touch Bracket.
(f)

MINIMUM TICK –The Minimum Tick size for the XLM Touch Bracket Variable
Payout Contracts shall be 0.00005 and the Tick Value shall be $1.00.

(g)

POSITION LIMIT –The Position Limit for the XLM Touch Bracket Variable Payout
Contracts shall be 250 Contracts, or as updated on the Exchange’s website or
Trading System.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the XLMTouch Bracket Variable Payout Contracts for contracted Market Makers shall be
250,000 Contracts per strike level, or as updated on the Exchange’s website or
Trading System.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on which
the XLM Touch Bracket Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedeﬁnition for Long and Short Variable Payout Contracts.

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(m)

XLM INDEX VALUE – The Source Agency shall calculate and produce an XLM
Index Value once each second throughout the life of the XLM Touch Bracket
Contracts. That is, each second the Source Agency will calculate a XLM Index
Value by taking by taking all U-XLM bid/ask midpoint prices occurring in the sixty(60) seconds leading up to the Calculation Time, provided at least twenty-ﬁve (25)bid/ask midpoint prices are captured during the sixty (60) second period, removing
the highest twenty (20) percent of U-XLM bid/ask midpoint prices and the lowest
twenty (20) percent of U-XLM bid/ask midpoint prices from the data set124, andusing the remaining U-XLM bid/ask midpoint prices to calculate the XLM Index
Value for that second. The calculation used is a simple average of the remaining
U-XLM bid/ask midpoint prices in the data set, rounded to one decimal point past
the precision of the Underlying market. In the event the time it takes to collect atleast twenty-ﬁve (25) U-XLM bid/ask midpoint prices exceeds the sixty (60)second period, the XLM Index Value will be calculated by the Source Agency bytaking the last twenty-ﬁve (25) U-XLM bid/ask midpoint prices just prior to the
Calculation Time, removing the highest ﬁve (5) U-XLM bid/ask midpoint prices andthe lowest ﬁve (5) U-XLM bid/ask midpoint prices, and using the remaining ﬁfteen(15) U-XLM bid/ask midpoint prices to calculate the XLM Index Value. The
calculation used is a simple average of all ﬁfteen (15) U-XLM bid/ask midpoint
prices, rounded to one decimal point past the precision of the Underlying market.

(n)

EXPIRATION VALUE – The Expiration Value is the XLM Index Value released by the
Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
STELLAR (XLM) CRYPTOCURRENCY EVENT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the Stellar
Cryptocurrency (“Stellar” or “XLM”) Event Contracts, referred to as an ‘EventContract”, issued by the Exchange.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot Stellar
cryptocurrency commodity bid/ask midpoint prices reported by Lukka, Inc. and the
ICE® Cryptocurrency Data aggregated by Blockstream® Corporation and

124 If 20% of the data set would result in a non-integer number of bid/ask midpoint prices, the number of bid/ask

midpoint prices to be removed from the set will be rounded down. For example, if the number of bid/ask midpoint
prices collected during the last 10 seconds prior to the close of trading was 31, 20% of the data set would be 6.2 bid/ask
midpoint prices. As 6.2 is a non-integer number, the value will be rounded down, and the 6 highest and 6 lowest bid/ask
midpoint prices will be removed from the data set.

367

distributed by ICE Data® Connectivity and Feeds, Inc., herein referred to as “UXLM”, quoted in US dollars.
(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is an Event Contract, which is a Swap.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Event Contracts are initially issued. For the Stellar EventContracts, the Payout Criteria for the Contracts will be set as forth below or as
updated on the Exchange’s Trading System:
(i)

(ii)

DAILY STELLAR EVENT CONTRACTS(1)

EXPIRATION TIME – 5 PM Saturday thru Thursday; 4 PM Friday.

(2)

STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.001.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Daily Stellar Event Contract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Event Contract “X” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.000, 0.00025, 0.00050, 0.00075 as reported by the Source
Agency. Four (4) strike levels will be generated above EventContract X at an interval of Y, and four (4) strike levels will be
generated below Event Contract X at an interval of Y (e.g. X – Y; X;
X + Y). The Contract will have a Payout Criterion of greater than the
strike level value.

INTRADAY STELLAR EVENT CONTRACTS(1)

EXPIRATION TIME – Every 2 Hours and every 20 minutes with theﬁrst expiration occurring at 1:00 am ET Saturday, and 11:20 pm ET
Friday, respectively, and the ﬁnal expiration occurring the following
Friday at the 4:00 pm ET CLOSE.

(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.0003 for 2-Hour Stellar Event Contracts, and 0.0001
for 20-minutes Stellar Event Contracts.
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(iii)(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday 2-Hour and 20-minutes Stellar EventContract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Event Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.00, 0.0001, 0.000025, 0.000050, 0.000075 as reported by
the Source Agency. Four (4) strike levels will be generated above
Event Contract X at an interval of Y and four (4) strike levels will be
generated below Event Contract X at an interval of Y(e.g. Y – X; Y; Y
+ X). The Contract will have a Payout Criterion of greater than the
strike level value.

Nadex may list additional Stellar Event Contracts with different ranges of
Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for Stellar Event Contracts shall be $0.1.

(g)

POSITION LIMIT – The Position Limits for Stellar Event Contracts shall be from2,500 to 25,000 Contracts per Class, or as updated on the Exchange’s website or
Trading System.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
Stellar Event Contracts for contracted Market Makers shall be from 5,000 to
50,000 per strike level, or as updated on the Exchange’s website or Trading
System.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same as the
Expiration Date. No trading in the Stellar Event Contracts shall occur after its Last
Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date on which the Stellar
price as reported by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Stellar price is released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on the Settlement Date. The Settlement Value of an in
the money Stellar Event Contract is from $10 to $100.
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(m)

EXPIRATION VALUE – The Expiration Value is the Stellar Index Value calculated
and produced by the Source Agency on the Expiration Date. The Source Agency
shall calculate and produce an XLM Index Value once each second throughout thelife of the XLM Touch Bracket Contracts. That is, each second the Source Agency
will calculate a XLM Index Value by taking all U-XLM bid/ask midpoint prices
occurring in the sixty (60) seconds leading up to the Calculation Time, provided atleast twenty-ﬁve (25) bid/ask midpoint prices are captured during the sixty (60)second period, removing the highest twenty (20) percent of U-XLM bid/ask
midpoint prices and the lowest twenty (20) percent of U-XLM bid/ask midpoint
prices from the data set2, and using the remaining U-XLM bid/ask midpoint prices
to calculate the XLM Index Value for that second. The calculation used is a simple
average of the remaining U-XLM bid/ask midpoint prices in the data set, rounded
to one decimal point past the precision of the Underlying market. In the event thetime it takes to collect at least twenty-ﬁve (25) U-XLM bid/ask midpoint prices
exceeds the sixty (60) second period, the XLM Index Value will be calculated by
the Source Agency by taking the last twenty-ﬁve (25) U-XLM bid/ask midpoint
prices just prior to the Calculation Time, removing the highest ﬁve (5) U-XLM
bid/ask midpoint prices and the lowest ﬁve (5) U-XLM bid/ask midpoint prices, andusing the remaining ﬁfteen (15) U-XLM bid/ask midpoint prices to calculate theXLM Index Value. The calculation used is a simple average of all ﬁfteen (15) UXLM bid/ask midpoint prices, rounded to one decimal point past the precision of
the Underlying market.

(n)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.

13.10

RESERVED

13.11

HEDERA HASHGRAPH (HBAR) CRYPTOCURRENCY EVENT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as theHedera Hashgraph Cryptocurrency (“Hedera Hashgraph” or “HBAR”) EventContracts, referred to as an “Event Contract”, issued by the Exchange.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot Hedera
Hashgraph cryptocurrency commodity bid/ask midpoint prices reported by Lukka,
Inc. herein referred to as “U-HBAR”, quoted in US dollars.

(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is an Event Contract, which is a Swap.
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(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Event Contracts are initially issued. For the Hedera
Hashgraph Event Contracts, the Payout Criteria for the Contracts will be set as
forth below or as updated on the Exchange’s Trading System:i)ii)

INTRADAY HEDERA HASHGRAPH EVENT CONTRACTS(1)

EXPIRATION TIME – Every 2 Hours and every 20 minutes with thefirst expiration occurring at 1:00 am ET Saturday, and 11:20 pm ET
Friday, respectively, and the final expiration occurring the following
Friday at the 4:00 pm ET CLOSE.

(2)STRIKE INTERVAL WIDTH – The interval width between each strikelevel shall be 0.00022 for 2-Hour Hedera Hashgraph EventContracts, and 0.00008 for 20-minutes Hedera Hashgraph EventContracts.

(3)

NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels will belisted for each Intraday 2-Hour and 20-minutes Hashgraph EventContract Series.

(4)

STRIKE LEVELS GENERATED - Strike levels will be generated suchthat Event Contract “Y” is valued ‘at-the-money’ in relation to theUnderlying market as determined by the Source Agency,
immediately before the issuance of these Contracts, and shall bemeasured in U.S. cents rounded to the nearest value ending ineither 0.00, 0.0001, 0.000025, 0.000050, 0.000075 as reported by
the Source Agency. Four (4) strike levels will be generated above
Event Contract X at an interval of Y and four (4) strike levels will be
generated below Event Contract X at an interval of Y(e.g. Y – X; Y; Y
+ X). The Contract will have a Payout Criterion of greater than the
strike level value.

Nadex may list additional Hashgraph Event Contracts with different ranges
of Payout Criteria on a discretionary basis in accordance with the CEA andCommission Regulations.

(f)

MINIMUM TICK – The Minimum Tick size for Hedera Hashgraph Event Contracts
shall be $0.1.

(g)

POSITION LIMIT – The Position Limits for Hedera Hashgraph Event Contracts
shall be 25,000 Contracts per Class, or as updated on the Exchange’s website or
Trading System.
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(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for theHedera Hashgraph Event Contracts for contracted Market Makers shall be from
5,000 to 50,000 per strike level, or as updated on the Exchange’s website or
Trading System.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same as the
Expiration Date. No trading in the Hedera Hashgraph Event Contracts shall occur
after its Last Trading Date.

(j)

SETTLEMENT DATE – The Settlement Date will be the date on which the Hedera
Hashgraph price as reported by the Source Agency.

(k)

EXPIRATION DATE – The Expiration Date of the Contract will be the date on which
the Hedera Hashgraph price is released.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder ofthe in the money Contract on the Settlement Date. The Settlement Value of an in
the money Hedera Hashgraph Event Contract is from $10 to $100.

(m)

EXPIRATION VALUE – The Expiration Value is the Hashgraph Index Value
calculated and produced by the Source Agency on the Expiration Date. The Source
Agency shall calculate and produce an HBAR Index Value once each second
throughout the life of the HBAR Touch Bracket Contracts. That is, each second
the Source Agency will calculate a HBAR Index Value by taking all U-HBAR bid/ask
midpoint prices occurring in the sixty (60) seconds leading up to the Calculation
Time, provided at least twenty-five (25) bid/ask midpoint prices are captured
during the sixty (60) second period, removing the highest twenty (20) percent of UHBAR bid/ask midpoint prices and the lowest twenty (20) percent of U-HBAR
bid/ask midpoint prices from the data set125, and using the remaining U-HBAR
bid/ask midpoint prices to calculate the HBAR Index Value for that second. The
calculation used is a simple average of the remaining U-HBAR bid/ask midpoint
prices in the data set, rounded to one decimal point past the precision of theUnderlying market. In the event the time it takes to collect at least twenty-five (25)
U-HBAR bid/ask midpoint prices exceeds the sixty (60) second period, the HBAR
Index Value will be calculated by the Source Agency by taking the last twenty-five(25) U-HBAR bid/ask midpoint prices just prior to the Calculation Time, removing
the highest five (5) U-HBAR bid/ask midpoint prices and the lowest five (5) U-HBAR
bid/ask midpoint prices, and using the remaining fifteen (15) U-HBAR bid/ask
midpoint prices to calculate the HBAR Index Value. The calculation used is a

125

If 20% of the data set would result in a non-integer number of bid/ask midpoint prices, the number of bid/ask
midpoint prices to be removed from the set will be rounded down. For example, if the number of bid/ask midpoint
prices collected during the last 10 seconds prior to the close of trading was 31, 20% of the data set would be 6.2 bid/ask
midpoint prices. As 6.2 is a non-integer number, the value will be rounded down, and the 6 highest and 6 lowest bid/ask
midpoint prices will be removed from the data set.

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372simple average of all fifteen (15) U-HBAR bid/ask midpoint prices, rounded to one
decimal point past the precision of the Underlying market.
(n)

13.12

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.
RESERVED

13.13
HEDERA HASHGRAPH (HBAR) CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE
PAYOUT CONTRACTS(a)

SCOPE – These Rules shall apply to the Class of Contracts referred to as the
HEDERA HASHGRAPH (HBAR) Cryptocurrency “Touch Bracket” Variable Payout
Contracts, referred to as a “Touch Bracket”, issued by the Exchange.

(b)

UNDERLYING – The Underlying for this Class of Contracts is the spot HBAR
cryptocurrency commodity bid/ask midpoint prices as reported in the Lukka Data
Feed herein referred to as “U-HBAR”, quoted in US dollars.

(c)

SOURCE AGENCY – The Source Agency is the Exchange.

(d)

TYPE – The Type of Contract is a Variable Payout Contract.

(e)

PAYOUT CRITERION – The Payout Criterion for each Contract will be set by the
Exchange at the time the Variable Payout Contracts are initially issued. For the
HBAR Touch Brackets, the Payout Criteria for the Contracts as forth below or as
updated on the Exchange’s Trading System:(i)

WEEKLY HBAR TOUCH BRACKET VARIABLE PAYOUT CONTRACTS,
Expiration is the earlier of (a) 4:15PM ET on the Last Trade Day of thecontract listing, or (b) when the HBAR Index Value is equal to or greaterthan the Ceiling, or equal to or less than the Floor. the Exchange shall lista set of four (4) Touch Bracket Variable Payout Contracts, each referred toas a ‘Touch Bracket’, that open at 11:00 PM ET on the first Trade Day of theweek, with overlapping ranges, which conform to the Payout Criteria listed
below.
CONTRACT 1: The Ceiling shall be X + 0.004; The Floor shall be X –0.001.
CONTRACT 2: The Ceiling shall be X + 0.003; The Floor shall be X – 0.002.
CONTRACT 3: The Ceiling shall be X + 0.002; The Floor shall be X – 0.003.
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CONTRACT 4: The Ceiling shall be X + 0.001; The Floor shall be X – 0.004.
DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1.
In each case, “X” equals the last U-HBAR value, as reported by the Source
Agency, rounded to the nearest 1.
(ii)

Upon the early Expiration of a Touch Bracket, the Exchange may list a new
Touch Bracket with a Ceiling of X +0.004 (or 0.001) and a Floor of X- 0.001(or 0.004) where X equals the Ceiling (or Floor) of the Touch Bracket that
expired early. The newly listed Touch Bracket will have the same Last
Trade Day as originally established for the expired Touch Bracket and thesame Dollar Multiplier as the expired Touch Bracket.

(f)

MINIMUM TICK –The Minimum Tick size for the HBAR Touch Bracket Variable
Payout Contracts shall be 0.000025 and the Tick Value shall be $1.00.

(g)

POSITION LIMIT –The Position Limit for the HBAR Touch Bracket Variable Payout
Contracts shall be 250 Contracts, or as updated on the Exchange’s website or
Trading System.

(h)

MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the
HBAR Touch Bracket Variable Payout Contracts for contracted Market Makers
shall be 250,000 Contracts per strike level, or as updated on the Exchange’s
website or Trading System.

(i)

LAST TRADING DATE – The Last Trading Date in a Series is the same date as the
Settlement Date.

(j)

SETTLEMENT DATE – The Settlement Date of the Contract shall be the same dateas the Expiration Date.

(k)

EXPIRATION DATE – The Expiration Date of the Contract shall be the date on
which the HBAR Touch Bracket Expiration Value is released by the Source Agency.

(l)

SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of
either a Short or Long Variable Payout Contract on Settlement Date. The
Settlement Value of a Variable Payout Contract is determined as described in thedefinition for Long and Short Variable Payout Contracts.

(m)

HBAR INDEX VALUE – The Source Agency shall calculate and produce an HBAR
Index Value once each second throughout the life of the HBAR Touch Bracket
Contracts. That is, each second the Source Agency will calculate a HBAR Index
Value by taking by taking all U-HBAR bid/ask midpoint prices occurring in the sixty(60) seconds leading up to the Calculation Time, provided at least twenty-five (25)374
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bid/ask midpoint prices are captured during the sixty (60) second period, removing
the highest twenty (20) percent of U-HBAR bid/ask midpoint prices and the lowest
twenty (20) percent of U-HBAR bid/ask midpoint prices from the data set126, andusing the remaining U-HBAR bid/ask midpoint prices to calculate the HBAR Index
Value for that second. The calculation used is a simple average of the remaining
U-HBAR bid/ask midpoint prices in the data set, rounded to one decimal point past
the precision of the Underlying market. In the event the time it takes to collect atleast twenty-five (25) U-HBAR bid/ask midpoint prices exceeds the sixty (60)second period, the HBAR Index Value will be calculated by the Source Agency bytaking the last twenty-five (25) U-HBAR bid/ask midpoint prices just prior to the
Calculation Time, removing the highest five (5) U-HBAR bid/ask midpoint prices
and the lowest five (5) U-HBAR bid/ask midpoint prices, and using the remaining
fifteen (15) U-HBAR bid/ask midpoint prices to calculate the HBAR Index Value.
The calculation used is a simple average of all fifteen (15) U-HBAR bid/ask
midpoint prices, rounded to one decimal point past the precision of the Underlying
market.
(n)

EXPIRATION VALUE – The Expiration Value is the HBAR Index Value released by
the Source Agency at Expiration on the Expiration Date.

(o)

CONTINGENCIES – If no level is actually announced on the Expiration Date due toa delay, postponement or otherwise in such release announcement by the Source
Agency, the Settlement Date will be delayed until the Underlying number isreleased for that Series.

126

If 20% of the data set would result in a non-integer number of bid/ask midpoint prices, the number of bid/ask
midpoint prices to be removed from the set will be rounded down. For example, if the number of bid/ask midpoint
prices collected during the last 10 seconds prior to the close of trading was 31, 20% of the data set would be 6.2 bid/ask
midpoint prices prices. As 6.2 is a non-integer number, the value will be rounded down, and the 6 highest and 6 lowest
bid/ask midpoint prices will be removed from the data set.

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End of Rulebook.

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