North American Derivatives Exchange
Emergency Action

Per North American Derivatives Exchange Rule 2.4, the undersigned two members of the
Management Team have authorized the adoption of a temporary emergency rule to address the emergency
following emergency:

Indicate the type of emergency being addressed (as listed in Rule 2.4(c)) (check appropriate):

(0) ____ 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 the Contracts
traded on, Nadex;

(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 or domestic) that may
have a direct impact on trading on Nadex;

(v) ____ any circumstances that may have a severe, adverse impact upon the physical
functions of Nadex including, for example, natural disasters such as 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, or computer systems failures or interruptions
to communications, the network, 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 to perform on
Contracts;

(vii) ___ _ any circumstance in which it appears that a Nadex Member or any other person is

in such operational condition, or is conducting business in such a manner, that
such person cannot be permitted to continue in business without jeopardizing the
safety of Nadex Members or Nadex itself; and

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

The reason for the emergency action is: On Thursday, June 23, 2016, as a result of the UK EU
Membership Referendum (“Brexit”), the underlying markets upon which the Nadex foreign currency
contracts are based experienced greater than usual volatility.

The Nadex Rules for its foreign currency contracts state that the data set used in the expiration
value is calculated is the last ten underlying midpoint prices between the bid/ask spread, ten pips wide or
less, just prior to the close of the Nadex contract. Due to the underlying market volatility, the time it took
to collect 10 bid/ask spreads ten pips wide or less for certain contracts exceeded the exchange set cut-off
time to gather the data set. Accordingly, in order to provide a more accurate settlement price, rather than
collecting bid/ask spreads several minutes prior to expiration of the contract, Nadex widened the acceptable
bid/ask spread used during the settlement calculation process for certain currency contracts. The specific
contracts for which a widened spread was used are identified in the table below with the contract’s
expiration date and time, as well as the duration of the contracts that were affected, and the acceptable
bid/ask spread that was used in the calculation.


Nadex is also widening the acceptable bid/ask spread used in the collection of data for expiration
value calculation in the GBP/USD 5-Minute Binary contracts expiring on trade date June 29, 2016 at
6:10pm ET, to 15 ticks wide or less.

Currency Pair Expiration Duration Bid/Ask Spread
Increase

EUR/IPY June 24, 2016: 2-Hr Spread 15 ticks wide or less
12:00am ET 2-Hr Binary

USD/CAD June 24, 2016: 2-Hr Spread 15 ticks wide or less
12:00am ET

GBP/JPY June 24, 2016: 5-Hr Spread 30 ticks wide or less
11:00pm ET Daily Binary

EUR/IPY June 24, 2016: 5-Hr Spread 15 ticks wide or less
11:00pm ET 2-Hr Spread

2-Hr Binary
Daily Binary

GBP/USD June 24, 2016: 2-Hr Spread 30 ticks wide or less
8:00pm ET 2-Hr Binary

EUR/IPY June 24, 2016: 2-Hr Spread 15 ticks wide or less
8:00pm ET 2-Hr Binary

USD/CHF June 24, 2016: 2-Hr Spread 15 ticks wide or less
8:00pm ET

GBP/USD June 24, 2016: 5-Min Binary 50 ticks wide or less
7:20pm ET

GBP/USD June 24, 2016: 5-Min Binary 15 ticks wide or less
7:05pm ET

GBP/JPY June 24, 2016: Daily Binary 15 ticks wide or less
7:00pm ET

GBP/USD June 23, 2016: 2-Hr Binary 50 ticks wide or less

5:00pm ET

oy _ ALM

Title: Chief Executive Officer

By:

Title: Chief Be a: Officer

Date: June 29, 2016