crypto.com | Derivatives North America

200 West Jackson Blvd., Suite 1400

Chicago, IL 60606

September 8, 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 Self-Certification: Amendments to Rules Related to Definitions and 

Member Obligations - 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, hereby submits to the Commission 

its intent to amend the following rules in order to clarify certain definitional terms, provide 

further detail on Member Obligations, provide technical amendments to certain contract 

specifications, and the correction of typographical errors:

• Rule 1.1 – Definitions

• Rule 2.5 – Committees and Subcommittees

• Rule 2.9 – Limitation on Trading by Affiliates

• Rule 2.10 – Consent to Jurisdiction

• Rule 3.3(a) – Member Obligations

• Rule 5.19(n) – Prohibited Transactions and Activities

• Rule 6.1 – Clearance and Substitution

• Rules 12.87 and 12.88 – Event Contracts

See Appendix A for a redlined Rulebook depicting the relevant changes for each of the above 

listed Nadex Rules.
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Analysis of Nadex Rule 2.9 Amendment Compliance With Core Principles

DCM Core Principles

Nadex has identified the following DCM Core Principles as potentially being 

impacted by the additional requirements for affiliated Trading: Core Principle 7 

(Availability of General Information); Core Principle 16 (Conflicts of Interest).

Core Principle 7 requires that the DCM ensure that its Rulebook is accurate, 

complete, current and readily accessible to the public, and all new or amended rules, both 

substantive and non-substantive, shall be reflected in the Rulebook on the date of 

implementation. Nadex makes its Rulebook publicly available on the Nadex website. On 

the effective date of this submission, the Rulebook will be updated and published with the 

aforementioned rule amendment. Accordingly, these amendments will not negatively affect 

Nadex’s ability to comply with this Core Principle.

Core Principle 16 requires a DCM to establish and enforce rules that minimize 

conflicts of interest and a process for resolving conflicts of interest. The additional 

language in Rule 2.9 will clarify limitations on trading for Market Maker and FCM 

Members. Therefore, this addition will not negatively impact Nadex’s ability to comply 

with this Core Principle.

DCO Core Principles

Nadex has identified the following DCO Core Principles as potentially being 

impacted by the additional means of funding a Nadex account: Core Principle P (Conflicts 

of Interest); and Core Principle L (Public Information).

Core Principle P requires a DCO to establish and enforce rules that minimize 

conflicts of interest and a process for resolving conflicts of interest. The additional language 

in Rule 2.9 will help CDNA clarify and enforce the policies and procedures it already has in 

place. Therefore, this addition will not negatively impact Nadex’s ability to comply with 

this Core Principle.

Core Principle L requires a DCO make publicly available its rules in a clear and 

comprehensive manner. Nadex makes its Rulebook publicly available on its website, which 

will be updated with the additions discussed herein on the effective date. Accordingly, these 

amendments will not negatively affect Nadex’s ability to comply with this Core Principle.

Analysis of Nadex Rules 2.10 and 3.3 Amendment Compliance With Core Principles

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

Principle as potentially being impacted by the amendments to Rule 2.10 and 3.3 discussed 

herein: Core Principle 2 (Compliance with the Rules); and Core Principle 7 (Availability of 

General Information) and Core Principle 13 (Disciplinary Procedures).

Core Principle 2 requires a DCM to, among other things, establish, monitor, and 

enforce access requirements, which shall be impartial, transparent and applied in a nondiscriminatory manner. The additional language to this rule will provide additional authority 

to the Exchange to collect critical data from market participants who are subject to inquiry 

or investigation. The addition also reinforces the obligation of responsiveness for Members 

in order to continue to access CDNA markets. Therefore, this addition will not negatively 

impact Nadex’s ability to comply with this Core Principle.

Core Principle 7 requires that the DCM ensure that its Rulebook is accurate, 

complete, current and readily accessible to the public, and all new or amended rules, both 

substantive and non-substantive, shall be reflected in the Rulebook on the date of 

implementation. Nadex makes its Rulebook publicly available on the Nadex website. On 

the effective date of this submission, the Rulebook will be updated and published with the 

aforementioned rule amendment. Accordingly, these amendments will not negatively affect 

Nadex’s ability to comply with this Core Principle.

Core Principle 13 requires a DCM to establish and enforce disciplinary procedures 

that authorize the DCM to discipline, suspend or expel members that violate the rules of the 

DCM. This rule addition clearly spells out the specific obligation that Members provide 

crypto spot market data to the Exchange upon request and also outlines the consequences 

for failing to do so. Therefore, this addition will not negatively impact Nadex’s ability to 

comply with this Core Principle.

DCO Core Principles

Nadex has identified the following DCO Core Principles as potentially being 

impacted by the additional means of funding a Nadex account: Core Principle C (Participant 

and Product Eligibility); and Core Principle L (Public Information).

Core Principle C requires a DCO to have appropriate admission and continuing 

participation requirements for clearing members that are objective, publicly disclosed, and 

risk-based. Moreover, the participation requirements shall permit fair and open access to 

the markets. As stated above, in order to continue to participate in CDNA markets, all 

Members will be required to produce crypto spot market information upon request. This 

requirement will be applied to all CDNA Members. Therefore, this addition will not 

negatively impact Nadex’s ability to comply with this Core Principle. 
4

Core Principle L requires a DCO make publicly available its rules in a clear and 

comprehensive manner. Nadex makes its Rulebook publicly available on its website, which 

will be updated with the additions discussed above on the effective date. Accordingly, these 

amendments will not negatively affect Nadex’s ability to comply with this Core Principle.

Analysis of Nadex Rule 5.19 Amendment Compliance With Core Principles

DCM Core Principles

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

Principle as potentially being impacted by the amendments to Rule 5.19 discussed herein: 

Core Principle 2 (Compliance with the Rules); and Core Principle 7 (Availability of General 

Information).

Core Principle 2 requires a DCM to, among other things, establish, monitor, and 

enforce access requirements, which shall be impartial, transparent and applied in a nondiscriminatory manner. Given how anti-manipulation statutes and regulations have evolved 

in the last decade, CDNA feels that it is important to update and broaden its reach in relying 

on relevant regulations when taking an enforcement action against a Member suspected of 

manipulating or attempting to manipulate its markets. Therefore, this addition will not 

negatively impact Nadex’s ability to comply with this Core Principle.

Core Principle 7 requires that the DCM ensure that its Rulebook is accurate, 

complete, current and readily accessible to the public, and all new or amended rules, both 

substantive and non-substantive, shall be reflected in the Rulebook on the date of 

implementation. Nadex makes its Rulebook publicly available on the Nadex website. On 

the effective date of this submission, the Rulebook will be updated and published noting the 

amending of Rule 5.19(n). Accordingly, these amendments will not negatively affect 

Nadex’s ability to comply with this Core Principle.

DCO Core Principles

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

potentially being impacted by the amendments to Rule 5.19 discussed herein.

Analysis of Nadex Rule 12.87 and 12.88 Amendment Compliance With Core 

Principles

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

as potentially being impacted by the amendments to Rules 12.87 and 12.88 discussed 

herein: Core Principle 7 (Availability of General Information).

Core Principle 7 requires that the DCM ensure that its Rulebook is accurate, complete, 

current and readily accessible to the public, and all or new amended rules, both substantive 

and non-substantive, shall be reflected in the Rulebook on the date of implementation. 

Nadex makes its Rulebook publicly available on the Nadex website. On the effective date 

of this submission, the Rulebook will be updated to reflect the amendments to the contract 

specifications for all contracts that will undergo an adjustment as per this submission. 

Accordingly, these amendments will not negatively affect Nadex’s ability to comply with 

this Core Principle.

DCO Core Principles

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

potentially being impacted by the amendments to Rules 12.87 and 12.88 discussed herein.

* * * * *

The amendments to the Rulebook are set forth in Exhibit A. 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 September 22, 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