North American Derivatives Exchange, Inc. (Nadex), part of IG Group Holdings plc (LON:IGG), is planning to change trading conditions for Daily Bitcoin contracts.
The Exchange plans to narrow the strike interval width in the Daily Bitcoin contracts and add more strike levels to maintain consistency in the strike range.
Effective February 8, 2016, the interval width between each strike level shall be 1, instead of previous 1.5.
Also, twenty-seven (27) strike levels will be listed for the Daily Bitcoin Binary Contract Series. This compares with an existing number of 21 strike levels. Nadex explains that thirteen (13) strike levels will be generated above Binary Contract X at an interval of 1, and thirteen (13) strike levels will be generated below Binary Contract X at an interval of 1.
Nadex offers daily and weekly Bitcoin binary option contracts expiring at 3:00PM EST. All Nadex Bitcoin binary options are settled by the last tick before expiration of the Tera® Bitcoin Price Index.
The necessary regulatory submission has been filed with the Commodity Futures Trading Commission (CFTC). You can view the full submission by clicking here. (Pay attention to Exhibits B and C).