Nadex officially adds 5 minute expiries next week on select FX pairs and amends its settlement price policy

Nadex, the American regulated binary options exchange has some new things being implemented next week. One, 5 minute expiries on major currency pairs will be introduced following submission and acceptance from the CFTC. Second, the binary options exchange will amend how it calculates official expiration rates.

You can read the official notices from Nadex below:

Pursuant to Section 5c(c)(1) of the Commodity Exchange Act, and Commission Regulation §40.6(a), Nadex has submitted to the Commission its intent to amend its Expiration Value calculation process for its foreign currency products. The Expiration Value for all foreign currency products will now be calculated by taking the last 10 midpoint prices just prior to expiration of the contract, removing the highest three and lowest 3 prices, and averaging the remaining four midpoint prices rounded to one decimal point past the precision of the underlying. Additionally, Nadex is adding Intraday 5-Minute Binary Contracts to its current listing of GBP/USD, EUR/USD, AUD/USD, and USD/JPY Binary Contracts. Three strike levels will be listed for each 5-Minute Intraday Binary Contract Series, and Contracts will expire every 5 minutes beginning at 6:05pm ET on Sunday evening and ending at 4:00pm ET on Friday.


Nadex is correcting a typographical error in its November 28th self-certification submission to the Commodity Futures Trading Commission with respect to the rounding value used to establish the at-the-money strike level during the contract generation process for the new Intraday 5-Minute Binary Contracts. In its original submission, Nadex indicated the rounding value for the AUD/USD, EUR/USD, and GBP/USD contracts would be 0.0005, and the value for the USD/JPY would be 0.05. The correct rounding value for the AUD/USD, EUR/USD, and GBP/USD contracts should be 0.0001, and 0.01 for the USD/JPY contracts.

Nadex plans to implement these changes on December 15, 2014.

Click the following link to view the CFTC submission.

Read Also: