North American Derivatives Exchange, Inc., 200 West Jackson Blvd., Suite 1400, Chicago, IL 60606

US Toll-Free +1 (877) 77 NADEX info@nadex.com www.nadex.com

Jaime M. Walsh

+1 (312) 884-0927

Jaime.walsh@nadex.com

No. 20220826(2)

External Communication - Disclose with care

August 26, 2022

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 Delists Germany 40 Variable Payout and Binary

Contracts - 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” or the 

“Exchange”) hereby submits to the Commission its intent to delist all of its Germany 40 Variable 

Payout and Binary Contracts. Specifically, Nadex will be delisting the following contracts:

RULE 12.50 GERMANY 40 VARIABLE PAYOUT CONTRACTS

RULE 12.51 GERMANY 40 BINARY CONTRACTS

 As §40.6(a) exempts the delisting of a product from the 10-day review period, Nadex will 

delist the aforementioned contracts effective at the close of business on trade date Friday, August 

26, 2022.

As of the close of business on August 26, 2022, all Germany 40 Variable Payout and Binary 

Contracts will have expired and no open positions or working orders will exist in the Nadex

market. 

Amendments to the Rulebook to remove the relevant contract specifications have been 

outlined in Exhibit A. Specific amendments are set forth in Exhibit B. Any deletions are stricken 

out while the amendments and/or additions are underlined.
North American Derivatives Exchange, Inc., 200 West Jackson Blvd., Suite 1400, Chicago, IL 60606

US Toll-Free +1 (877) 77 NADEX info@nadex.com www.nadex.com

External Communication - Disclose with care

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 events was posted on its website at the time of this filing.

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

by telephone at (312) 884-0927 or by email at jaime.walsh@nadex.com.

 

 Sincerely, 

 Jaime M. Walsh

 Head of Legal
North American Derivatives Exchange, Inc., 200 West Jackson Blvd., Suite 1400, Chicago, IL 60606

US Toll-Free +1 (877) 77 NADEX info@nadex.com www.nadex.com

External Communication - Disclose with care

EXHIBIT A

Rule Asset Duration/Close Time Action Effective 

Date

12.50 Germany 40 

Variable Payout 

Contracts

All Contracts Delist contracts COB August 

26, 2022

12.51 Germany 40 

Binary Contracts

All Contracts Delist contracts COB August 

26, 2022
North American Derivatives Exchange, Inc., 200 West Jackson Blvd., Suite 1400, Chicago, IL 60606

US Toll-Free +1 (877) 77 NADEX info@nadex.com www.nadex.com

External Communication - Disclose with care

EXHIBIT B

Amendment of Rules 12.50 - 12.51

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

RULES 1.1 – 12.49 [UNCHANGED]

RULES 12.50 – 12.53 [RESERVED]

RULE 12.50 GERMANY 40 VARIABLE PAYOUT CONTRACTS

(a) SCOPE –These Rules shall apply to the Class of Contracts referred to as the Germany 

40 Variable Payout Contracts issued by Nadex. 

(b) UNDERLYING – The Underlying for this Class of Contracts is the price (in Euro 

Currency) of the DAX® Futures contracts (“DFC”) traded on the Eurex® exchange (Eurex).1 The 

DFC trade prices that will be used for the Underlying will be taken from four (4) DFC delivery 

months: March, June, September, or December (each a “DFC 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 

Eurex DAX March 2012 futures have an Expiration Date of March 16, 2012. The last day on 

which the DAX 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 DAX contracts will 

be the Monday of the week of the Eurex DAX March 2012 futures contracts Expiration Date (i.e. 

March 16, 2012). Therefore, the End Date for using Eurex DAX March 2012 futures will be 

March 12, 2012 and the Start Date for the next delivery month, Eurex DAX June 2012 futures, 

will be March 13, 20122. 

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

1 Eurex® and DAX® are registered marks of Deutsche Börse AG. Nadex is not affiliated with the Eurex or Deutsche 

Börse AG, and neither Eurex nor its affiliates sponsor or endorse Nadex or its products in any way. In particular, 

the Nadex Germany 40 Variable Payout Contracts are not sponsored, endorsed, sold or promoted by Eurex or 

Deutsche Börse AG.

2 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 Eurex DAX March 2012 Underlying futures is March 12, 2012. March 

12, 2012 is a Monday, however, and any Nadex weekly contracts listed on this date and expiring on Friday, March 

16, 2012, will be listed using the Eurex DAX June 2012 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 Eurex DAX June 2012 futures will be Monday, March 12, 2012 for any 

Nadex weekly contracts listed on this date.
North American Derivatives Exchange, Inc., 200 West Jackson Blvd., Suite 1400, Chicago, IL 60606

US Toll-Free +1 (877) 77 NADEX info@nadex.com www.nadex.com

External Communication - Disclose with care

(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 Germany 40 Variable 

Payout Contract, the Payout Criteria for the Contracts will be set as follows:

(i) DAILY GERMANY 40 CALL SPREAD VARIABLE 

PAYOUT CONTRACTS, 4:00 PM ET CLOSE - At the commencement of trading in 

a Daily Germany 40 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 GERMANY 40 CALL SPREAD CONTRACT 

(aa) CEILING – The Ceiling shall be X + 200.

(bb) FLOOR – The Floor shall be X – 200.

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

(2) In each case, “X” equals the last DFC trade price, as reported by the Source 

Agency, rounded to the nearest 100.

(ii) DAILY GERMANY 40 CALL SPREAD CONTRACTS, 

4:00 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 – 200.

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

(3) CONTRACT 3: The Ceiling shall be X + 200; The Floor shall be X.

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

(5) In each case, “X” equals the last DFC price, as reported by the Source Agency, 

rounded to the nearest 100.

(iii) INTRADAY GERMANY 40 CALL SPREAD 

CONTRACTS, 8AM ET to 4:00 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 – 150.

(2) CONTRACT 2: The Ceiling shall be X + 75; The Floor shall be X – 75.

(3) CONTRACT 3: The Ceiling shall be X + 150; The Floor shall be X.
North American Derivatives Exchange, Inc., 200 West Jackson Blvd., Suite 1400, Chicago, IL 60606

US Toll-Free +1 (877) 77 NADEX info@nadex.com www.nadex.com

External Communication - Disclose with care

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

(5) In each case, “X” equals the last DFC price, as reported by the Source Agency, 

rounded to the nearest 25.

(iv) INTRADAY 2-HOUR GERMANY 40 CALL SPREAD 

CONTRACTS, 5:00AM, 6:00AM, 7:00AM, 8:00AM, 9:00AM, 10:00AM, 11:00AM, 

12:00PM, 1:00PM, 2:00PM, 3:00PM and 4:00PM 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 – 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 1.

(5) In each case, “X” equals the last DFC price, as reported by the Source Agency, 

rounded to the nearest 25.

(6) The Intraday 2-Hour Germany 40 Call Spread Contracts, 5:00AM, 6:00AM, 

7:00AM, 8:00AM, 9:00AM, 10:00AM, 11:00AM, 12:00PM, 1:00PM, 2:00PM, 3:00PM and 

4:00PM ET Close, will not be listed on the three Business Days immediately following the End 

Date of the Underlying.

(v) Nadex may list additional Call Spread 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 Germany 40 Call Spread Contracts 

shall be 1. 

(g) POSITION LIMIT – The Position Limits for Germany 40 Call Spread Contracts shall 

be 250 Contracts per Class. 

(h) MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for 

the Germany 40 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 date 

as the Expiration Date. 
North American Derivatives Exchange, Inc., 200 West Jackson Blvd., Suite 1400, Chicago, IL 60606

US Toll-Free +1 (877) 77 NADEX info@nadex.com www.nadex.com

External Communication - Disclose with care

(k) EXPIRATION DATE – The Expiration Date of the Contract shall be the date on 

which the Germany 40 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 the definition for Long and Short Variable 

Payout Contracts.

(m) EXPIRATION VALUE – The Expiration Value is the price or value of Germany 40 

released by the Source Agency on the Expiration Date. The Expiration Value is calculated by the 

Source Agency by taking all DFC trade prices occurring in the ten (10) seconds leading up to the 

close of trading of the Germany 40 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 DFC trade prices and the lowest twenty (20) percent of DFC trade prices from the data set3, 

and using the remaining DFC trade prices to calculate the Expiration Value. The calculation used 

is a simple average of the remaining DFC 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) DFC trade prices exceeds the ten (10) seconds just prior to the close of trading 

of the Germany 40 Call Spread Contract, the Expiration Value is calculated by the Source Agency 

by taking the last twenty-five (25) DFC trade prices just prior to the close of trading of the 

Germany 40 Call Spread Contract removing the highest five (5) DFC trade prices and the lowest 

five (5) DFC trade prices, and using the remaining fifteen (15) DFC trade prices to calculate the 

Expiration Value. The calculation used is a simple average of all fifteen (15) DFC 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 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 12.51 GERMANY 40 BINARY CONTRACTS 

(a) SCOPE – These Rules shall apply to the Class of Contracts referred to as the Germany 

40 Binary Contracts issued by Nadex. 

(b) UNDERLYING – The Underlying for this Class of Binary Contracts is the price (in 

Euro Currency) of the DAX® Futures contracts (“DFC”) traded on the Eurex® exchange (Eurex).4 

The DFC trade prices that will be used for the Underlying will be taken from four (4) DFC 

3

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.

4 Eurex® and DAX® are registered marks of Deutsche Börse AG. Nadex is not affiliated with the Eurex or Deutsche 

Börse AG, and neither Eurex nor its affiliates sponsor or endorse Nadex or its products in any way. In particular, 

the Nadex Germany 40 Binary Option Contracts are not sponsored, endorsed, sold or promoted by Eurex or 

Deutsche Börse AG.
North American Derivatives Exchange, Inc., 200 West Jackson Blvd., Suite 1400, Chicago, IL 60606

US Toll-Free +1 (877) 77 NADEX info@nadex.com www.nadex.com

External Communication - Disclose with care

delivery months: March, June, September, or December (each a “DFC 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 Eurex DAX March 2012 futures have an Expiration Date of March 16, 2012. The 

last day on which the DAX 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 DAX 

contracts will be the Monday of the week of the Eurex DAX March 2012 futures contracts 

Expiration Date (i.e. March 16, 2012). Therefore, the End Date for using Eurex DAX March 

2012 futures will be March 12, 2012 and the Start Date for the next delivery month, Eurex DAX 

June 2012 futures, will be March 13, 20125. 

(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 Germany 40 Binary 

Contract, the Payout Criteria for the Contracts will be set as follows:

(i) WEEKLY GERMANY 40 BINARY CONTRACTS 

(1) EXPIRATION TIME – 4:00 PM ET CLOSE

(2) STRIKE INTERVAL WIDTH – The interval width between each strike level

 shall be 50.

(3) NUMBER OF STRIKE LEVELS LISTED - Thirteen (13) strike levels will 

 be listed for each Weekly Germany 40 Future Binary Contract Series.

(4) STRIKE LEVELS GENERATED - Strike levels will be generated such that

 Binary Contract “X” is valued ‘at-the-money’ in relation 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 25 or 75 as reported by the Source Agency. Six (6) strike 

 levels will be generated above Binary Contract X at an interval of 50, and six 

 (6) strike levels will be generated below Binary Contract X at an interval of 

5 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 Eurex DAX March 2012 Underlying futures is March 12, 2012. March 

12, 2012 is a Monday, however, and any Nadex weekly contracts listed on this date and expiring on Friday, March 

16, 2012, will be listed using the Eurex DAX June 2012 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 Eurex DAX June 2012 futures will be Monday, March 12, 2012 for any 

Nadex weekly contracts listed on this date.
North American Derivatives Exchange, Inc., 200 West Jackson Blvd., Suite 1400, Chicago, IL 60606

US Toll-Free +1 (877) 77 NADEX info@nadex.com www.nadex.com

External Communication - Disclose with care

 50 (e.g. X – 50; X; X + 50). The Contract will have a Payout Criterion of 

 greater than the strike level value.

(ii) DAILY GERMANY 40 BINARY CONTRACTS 

(1) EXPIRATION TIME – 4:00 PM ET CLOSE

(2) STRIKE INTERVAL WIDTH – The interval width between each strike level

 shall be 20.

(3) NUMBER OF STRIKE LEVELS LISTED – Twenty-one (21) strike levels 

 will be listed for each Daily Germany 40 Binary Contract Series.

(4) STRIKE LEVELS GENERATED - Strike levels will be generated such that

 Binary Contract “Y” is valued ‘at-the-money’ in relation 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 20 as reported by the Source Agency. Ten (10) strike levels 

 will be generated above Binary Contract Y at an interval of 20, and ten (10) 

 strike levels will be generated below Binary Contract Y at an interval of 20 

 (e.g. Y – 20; Y; Y + 20). The Contract will have a Payout Criterion of greater 

 than the strike level value.

(iii) INTRADAY GERMANY 40 BINARY CONTRACTS 

(1) EXPIRATION TIME – 5 AM, 6 AM, 7 AM, 8 AM, 9AM, 10 AM, 11 AM, 

 12 PM, 1 PM, 2 PM, 3 PM, 4 PM ET CLOSE

(2) EXCEPTIONS – No Intraday Germany 40 Binary Contract will be listed on 

the three Business Days immediately following the End Date of the Underlying.

(3) STRIKE INTERVAL WIDTH – The interval width between each strike level

 shall be 20.

(4) NUMBER OF STRIKE LEVELS LISTED – Nine (9) strike levels 

 will be listed for each Intraday Germany Binary Contract Series.

(5) STRIKE LEVELS GENERATED - Strike levels will be generated such that

 Binary Contract “Z” is valued ‘at-the-money’ in relation 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 1 as reported by the Source Agency. Four (4) strike levels 

 will be generated above Binary Contract Z at an interval of 20, and four (4) 

 strike levels will be generated below Binary Contract Z at an interval of 20 

 (e.g. Z – 20; Z; Z + 20). The Contract will have a Payout Criterion of greater 

 than the strike level value.
North American Derivatives Exchange, Inc., 200 West Jackson Blvd., Suite 1400, Chicago, IL 60606

US Toll-Free +1 (877) 77 NADEX info@nadex.com www.nadex.com

External Communication - Disclose with care

(iv) Nadex may list additional Germany 40 Binary Contract 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 Germany 40 Binary Contract 

shall be $0.25.

(g) POSITION LIMIT – The Position Limits for the Germany 40 Binary Contracts shall 

be 2,500 Contracts per Class. 

(h) MARKET MAKER ALTERNATIVE POSITION LIMIT – The Position Limit for the 

Germany 40 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 for which 

the relevant DFC daily settlement price is released by the Source Agency. 

(l) SETTLEMENT VALUE – The Settlement Value is the amount paid to the holder of 

the in-the-money Contract on the Settlement Date. The Settlement Value of an in-the-money 

Germany 40 Binary Contract is $100.

(m) EXPIRATION VALUE – The Expiration Value is the price or value of Germany 40 

released by the Source Agency on the Expiration Date. The Expiration Value is calculated by the 

Source Agency by taking all DFC trade prices occurring in the ten (10) seconds leading up to the 

close of trading of the Germany 40 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 DFC 

trade prices and the lowest twenty (20) percent of DFC trade prices from the data set6, and using 

the remaining DFC trade prices to calculate the Expiration Value. The calculation used is a simple 

average of the remaining DFC 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) DFC trade prices exceeds the ten (10) seconds just prior to the close of trading of the 

Germany 40 Binary Contract, the Expiration Value is calculated by the Source Agency by taking 

the last twenty-five (25) DFC trade prices just prior to the close of trading of the Germany 40 

6

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.
North American Derivatives Exchange, Inc., 200 West Jackson Blvd., Suite 1400, Chicago, IL 60606

US Toll-Free +1 (877) 77 NADEX info@nadex.com www.nadex.com

External Communication - Disclose with care

Binary Contract removing the highest five (5) DFC trade prices and the lowest five (5) DFC trade 

prices, and using the remaining fifteen (15) DFC trade prices to calculate the Expiration Value. 

The calculation used is a simple average of all fifteen (15) DFC trade prices, rounded to one 

decimal point past the precision of the underlying market. 

(n) CONTINGENCIES – If no daily settlement price of the relevant DFC 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.

RULES 12.54 – 12.65 [UNCHANGED]

End of Rulebook.

The remainder of this page has intentionally been left blank.