crypto.com | Derivatives North America

200 West Jackson Blvd., Suite 1400

Chicago, IL 60606

June 5, 2023

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 Amends the Hours for Trading Contracts on the 

Exchange- 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”) hereby submits to the Commission its intent to amend the hours for trading 

contracts on Nadex as described in Nadex Rules 5.18, 12.24 and 12.25. Specifically, Nadex 

will be amending its market hours to make contracts available for trading from 11:00 p.m. 

Eastern Time on Friday to 4:15 p.m. Eastern Time on the following Friday, excluding endof-day processing hours which occur between 5:00 p.m. and 6:00 p.m. Eastern Time on 

Saturday through Thursday.

DCM Core Principles

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

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

7 Availability of General Information.

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

38.400, requires the DCM make available to the public accurate information concerning the 

terms and conditions of the contracts of the contract market. Nadex currently makes its 

Rulebook available to the public on its website and will continue to do so following the 

effective date of this submission. The Rulebook contains the hours for trading contracts. 

The Nadex public website also lists the hours that contracts are made available for trading 

on the Exchange. Accordingly, these amendments will not negatively affect Nadex’s ability 

to comply with this Core Principle.
2

DCO Core Principles

Nadex has not identified any Derivatives Clearing Organization (“DCO”) Core 

Principles as potentially being impacted by the amendments discussed herein.

A complete index of the DCM and DCO Core Principles that indicates whether the 

Core Principle is applicable and addressed in the text of this submission is attached in Exhibit 

A. These Rule changes have been outlined in Exhibit B. The amendments to the Rulebook 

are set forth in Exhibit C. Any deletions are stricken out while the amendments and/or 

additions are underlined.

Nadex hereby certifies that the additions contained herein comply 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 notice of these amendments 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), these Rule changes will be effective as of June 19, 2023. 

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.

 Sincerely, 

 Kevin J. Dan

 Chief Compliance Officer

 Chief Regulatory Officer
3

EXHIBIT A

Designated Contract Market (“DCM”) Core Principles

Core 

Principle 

Number

Core Principle Name Addressed in or Not 

Applicable to SelfCertification

1 Designation as Contract Market Not applicable

(designation granted)

2 Compliance with Rules N/A; not impacted by this 

submission

3 Contracts Not Readily Subject to 

Manipulation

N/A; not impacted by this 

submission

4 Prevention of Market Disruption N/A; not impacted by this 

submission

5 Position Limitations or Accountability N/A; not impacted by this 

submission

6 Emergency Authority Not applicable (Nadex 

Rulebook, 2.4 Emergency 

Rules)

7 Availability of General Information Addressed

8 Daily Publication of Trading 

Information

N/A; not impacted by this 

submission

9 Execution of Transactions N/A; not impacted by this 

submission

10 Trade Information N/A; not impacted by this 

submission

11 Financial Integrity of Transactions N/A; not impacted by this 

submission, all trades are 

fully collateralized

12 Protection of Markets and Market 

Participants

N/A; not impacted by this 

submission

13 Disciplinary Procedures Not applicable (Nadex

Rulebook, Chapter 9 Rule 

Enforcement)
4

14 Dispute Resolution Not applicable (Nadex 

Rulebook, 10.2 – 10.4 

Arbitration)

15 Governance Fitness Standards Not applicable (Nadex

Rulebook, 2.2 Service 

Restrictions, 11.2 Service 

and Disciplinary History)

16 Conflicts of Interest Not applicable (Nadex 

Rulebook, 2.6 Voting, 2.9 

Trading Limitations, 11.1 

Non-Public Information, 

11.3 Voting)

17 Composition of Governing Boards of 

Contract Markets

Not applicable (internal 

review and appointment of 

directors)

18 Recordkeeping N/A; not impacted by this 

submission

19 Antitrust Considerations Not applicable

20 System Safeguards Not applicable (internal 

controls and policies in 

place)

21 Financial Resources Not applicable (capital 

requirements and quarterly 

reporting compliant)

22 Diversity of Boards of Directors Not applicable (not public 

company, internal review

and appointment of 

directors)

23 Securities and Exchange Commission Not applicable
5

Derivatives Clearing Organization (“DCO”) Core Principles

Core 

Principle 

Number

Core Principle Name Addressed in or Not 

Applicable to SelfCertification

A Compliance Not applicable

B Financial Resources Not applicable (capital 

requirement and quarterly 

reporting compliant)

C Participant and Product Eligibility N/A; not impacted by this 

submission

D Risk Management N/A; not impacted by this 

submission

E Settlement Procedures N/A; not impacted by this 

submission

F Treatment of Funds Not applicable (Nadex 

Rulebook Chapter 8 

Member Funds)

G Default Rules and Procedures N/A; not impacted by this 

submission

H Rule Enforcement Not applicable (Nadex 

Rulebook, Chapter 9 Rule 

Enforcement, 10.2 – 10.4 

Arbitration)

I System Safeguards Not applicable (internal 

controls and policies in 

place)

J Reporting Not applicable (Nadex

Rulebook Chapter 8 

Member Funds)

K Recordkeeping N/A; not impacted by this 

submission

L Public Information Not applicable (Nadex 

Rulebook Chapter 8 

Member Funds)
6

M Information Sharing N/A; not impacted by this 

submission

N Antitrust Considerations Not applicable

O Governance Fitness Standards Not applicable (Nadex 

Rulebook, 2.2 Service 

Restrictions, 11.2 Service 

and Disciplinary History, 

internal review and 

appointment of directors)

P Conflicts of Interest Not applicable (Nadex 

Rulebook, 2.6 Voting, 2.9 

Trading Limitations, 11.1 

Non-Public Information, 

11.3 Voting)

Q Composition of Governing Boards Not applicable (internal 

review and appointment of 

directors)

R Legal Risk Not applicable (Nadex

Rulebook Chapter 6)
7

EXHIBIT B

Rule Asset Duration/Close Time Action Effective 

Date

5.18 Hours for 

Trading 

Contracts

All Contracts Amends the market hours for 

trading contracts on the Exchange

6/19/2023

12.24 Bitcoin 

Cryptocurrency

Touch Bracket 

Variable Payout 

Contracts

All Contracts Amends the opening listing time for 

trading contracts on the Exchange

6/19/2023

12.25 Ether

Cryptocurrency

Touch Bracket 

Variable Payout 

Contracts

All Contracts Amends the opening listing time for 

trading contracts on the Exchange

6/19/2023
8

EXHIBIT C

Amendment of Rule 5.18

(The following Rule amendments are underlined and deletions are stricken out)

RULES 1.1 – 5.17 [UNCHANGED]

RULE 5.18 HOURS FOR TRADING CONTRACTS

The Market will be open for execution of your orders during specified hours in a regular 

trading session from 116:00 p.m. (T-1) to 4:155:00 p.m. Eastern Time FridaySunday through 

the following Friday Thursday, excluding end-of-day processing hours which occur between 

5:00 p.m. and 6:00 p.m. Eastern Time on Saturday through Thursday and during a regular 

trading session from 6:00 p.m. (T-1) to 4:15 p.m. Eastern Time on Friday. 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, or other 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, unless 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 

new orders and/or cancel or modify open orders whenever those markets are available for 

trading.

RULES 5.19 – 12.23 [UNCHANGED]

RULE 12.24 BITCOIN CRYPTOCURRENCY “TOUCH BRACKET” VARIABLE 

PAYOUT CONTRACTS

(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 as reported in the ICE® Cryptocurrency Data34 aggregated by 

Blockstream® Corporation35 and distributed by ICE Data® Connectivity and Feeds, Inc.36, 

herein referred to as “IDCF BIT”, quoted in US dollars.

(c) SOURCE AGENCY – The Source Agency is Nadex.

(d) TYPE – The Type of Contract is a Variable Payout Contract.
9

(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 

the contract listing, or (b) when the Bitcoin 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, each referred to as a ‘Touch Bracket’, that open 

at 116:00PM 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 + 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 IDCF BIT value, as reported by the Source 

Agency, rounded to the nearest 1.

(ii) 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 date 

as the Expiration Date.

(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.
10

(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 the definition 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 all IDCF BIT 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 IDCF BIT trade prices 

and the lowest twenty (20) percent of IDCF BIT trade prices from the data set and using the 

remaining IDCF BIT trade prices to calculate the Bitcoin Index Value for that second. The 

calculation used is a simple average of the remaining IDCF BIT 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) IDCF BIT trade prices exceeds the ten (10) 

second period, the Bitcoin Index Value will be calculated by the Source Agency by taking 

the last twenty-five (25) IDCF BIT trade prices just prior to the Calculation Time, removing 

the highest five (5) IDCF BIT trade prices and the lowest five (5) IDCF BIT trade prices, 

and using the remaining fifteen (15) IDCF BIT trade prices to calculate the Bitcoin Index 

Value. The calculation used is a simple average of all fifteen (15) IDCF BIT trade prices, 

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 

to a 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 that Series.

RULE 12.25 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 as a ‘Touch 

Bracket”, issued by Nadex.

(b) UNDERLYING – The Underlying for this Class of Contracts is the spot Ether 

cryptocurrency reported in the ICE® Cryptocurrency Data38, aggregated by Blockstream® 

Corporation39 and distributed by ICE Data® Connectivity and Feeds, Inc.40, herein referred 

to as “IDCF ETH”, quoted in US dollars.

(c) SOURCE AGENCY – The Source Agency is Nadex.

(d) TYPE – The Type of Contract is a Variable Payout Contract.
11

(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 the Contract listing, 

or (b) when the Ether 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, each referred to as a ‘Touch Bracket’, that open at 116:00PM 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 + 200; The Floor shall be X - 50.

(2) CONTRACT 2: The Ceiling shall be X + 150; The Floor shall be X – 100.

(3) CONTRACT 3: The Ceiling shall be X + 100; The Floor shall be X - 150.

(4) CONTRACT 4: The Ceiling shall be X + 50; The Floor shall be X – 200.

(5) DOLLAR MULTIPLIER – The Dollar Multiplier shall be 1.

(6) In each case, “X” equals the last IDCF ETH value, as reported by the Source 

Agency, rounded to the nearest 1.

(ii) Upon the early Expiration of a Touch Bracket, Nadex may list a new Touch 

Bracket with a Ceiling of X + 200 (or 50) and a Floor of X – 50 (or 200) 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 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 date 

as 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 
12

of a Variable Payout Contract is determined as described in the definition 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 Value by taking by 

taking all IDCF ETH 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 IDCF ETH trade prices and 

the lowest twenty (20) percent of IDCF ETH trade prices from the data set41, and using the 

remaining IDCF ETH trade prices to calculate the Ether Index Value for that second. The 

calculation used is a simple average of the remaining IDCF ETH 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) IDCF ETH trade prices exceeds the ten (10) 

second period, the Ether Index Value will be calculated by the Source Agency by taking the 

last twenty-five (25) IDCF ETH trade prices just prior to the Calculation Time, removing 

the highest five (5) IDCF ETH trade prices and the lowest five (5) IDCF ETH trade prices, 

and using the remaining fifteen (15) IDCF ETH trade prices to calculate the Ether Index 

Value. The calculation used is a simple average of all fifteen (15) IDCF ETH trade prices, 

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 

to a 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 that Series.

RULES 12.26 – 12.88 [UNCHANGED]

End of Rulebook.