crypto.com | Derivatives North America

200 West Jackson Blvd., Suite 1400

Chicago, IL 60606

January 3, 2024

Via CFTC Portal Submissions

Mr. Christopher Kirkpatrick

Secretary of the Commission

Office of the Secretariat

Commodity Futures Trading Commission

3 Lafayette Centre 

1155 21st Street, N.W. 

Washington D.C. 20581

RE: Rule Certification: Nadex Extends Market Maker Program - Submission 

Pursuant to Commission Regulation §40.6(a)

Dear Mr. Kirkpatrick:

Pursuant to Section 5c(c)(1) of the Commodity Exchange Act, as amended (the 

“Act”), and §40.6(a) of the regulations promulgated by the Commodity Futures Trading 

Commission (the “Commission”) under the Act, North American Derivatives Exchange, Inc. 

(“Nadex”) d/b/a crypto.com | Derivatives North America (the “Exchange”) hereby submits 

to the Commission its intent continue its ongoing Market Maker Program (“Program”) 

through the 2024 year.

Nadex has identified the following Designated Contract Market (“DCM”) Core 

Principles as potentially being impacted by the amendments discussed herein: Core 

Principle 2 (Compliance with Rules), Core Principle 4 (Prevention of Market Disruption), 

Core Principle 7 (Availability of General Information), Core Principle 9 (Execution of 

Transactions), Core Principle 12 (Protection of Market Participants).

Core Principle 2 (Compliance with Rules), implemented by Commission Regulation 

38.151 (Access Requirements) requires the DCM provide impartial access to its markets to 

any of its members or market participants. The Market Maker Program is available to 

qualifying participants who meet the Exchange’s Membership requirements and who are 

able to comply with the terms of the Market Maker Agreement.

Core Principle 4 (Prevention of Market Disruption), implemented by Commission 

Regulation 38.251, requires the DCM to conduct real-time monitoring of trading and market 

conditions to detect and prevent manipulative activity and market anomalies, among other

things. The Exchange has dedicated market regulation staff and an automated surveillance 

system to monitor all markets in real-time. The surveillance system not only monitors for 

abnormal market conditions, market abuse, and potential manipulative activity, but also 
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monitors Market Makers’ activity for compliance with the quoting parameters of the Market 

Maker Agreement.

Core Principle 7 (Availability of General Information), implemented by Commission 

Regulations 38.400 and 38.401, requires the DCM to make its Rules, including material 

terms of its Market Maker Program, available on its website. The Nadex Market Maker 

Agreement is available on the Nadex website on the Rules page.

Core Principle 9 (Execution of Transactions), implemented by Commission 

Regulation 38.500, requires the DCM to provide a competitive, open, and efficient market 

and mechanism for executing transactions that protects the price discovery process of trading 

in the centralized market of the board of trade. The Program facilitates an open, competitive, 

and efficient market by providing liquidity and a robust market for all Nadex Members to 

trade, which minimizes the potential for manipulative activity by individual participants.

Core Principle 12 (Protection of Market Participants), implemented by Commission 

Regulation 38.651, requires the DCM to have and enforce rules that are designed to promote 

fair and equitable trading and to protect the market and market participants from abusive 

practices including fraudulent, noncompetitive or unfair actions, committed by any party. 

All Members, including Market Makers, agree to comply with the Nadex Rules and consent 

to Nadex’s jurisdiction. Nadex Rule 5.19 prohibits participants from engaging in abusive 

practices including fraudulent, noncompetitive or unfair actions.

Based on the above explanations, Nadex’s continuing Market Maker Program will 

not negatively impact the Exchange’s ability to comply with the Core Principles.

Attached is Exhibit A which contains the Market Maker Agreement and a public 

version of Appendix A to the Market Maker Agreement.

Nadex hereby certifies that the Program complies with the Act, as amended, and the 

Commission Regulations adopted thereunder. No substantive opposing views were 

expressed to Nadex with respect to any of these actions.

Nadex hereby certifies that a copy of the Market Maker Agreement and this selfcertification was posted on its website at the time of this filing.

In accordance with the 10-day review period set forth in Commission Regulation 

40.6(a)(3), this filing will be effective on January 18, 2024. 

Should you have any questions regarding the above, please do not hesitate to contact 

me by telephone at (312) 884-0161 or by email at kevin.dan@nadex.com.
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 Sincerely, 

 Kevin J. Dan

 Chief Compliance Officer

 Chief Regulatory Officer