North American Derivatives Exchange, Inc. (Nadex), part of IG Group Holdings plc (LON:IGG), has submitted a notice with the Commodity Futures Trading Commission (CFTC), informing it of its plans to expand its offering.
Nadex will be offering new Daily EUR/GBP and AUD/JPY ‘Wide’ and ‘Narrow’ Spread contracts.
New EUR/GBP contracts
At the start of trading in a Daily Spread EUR/GBP Variable Payout Contract, Nadex will list one (1) Variable Payout Contract, referred to as a ‘Spread’, which conforms to the following Payout Criteria:
- CAP – The Cap shall be X + 0.0250.
- FLOOR – The Floor shall be X – 0.0250.
- DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.
(“X” equals the last EUR/GBP price, as reported by the Source Agency).
Nadex will list a set of three (3) Variable Payout Contracts with overlapping ranges, which conform to the following Payout Criteria:
- CONTRACT 1: The Cap shall be X; The Floor shall be X – 0.0250.
- CONTRACT 2: The Cap shall be X + 0.0125; The Floor shall be X – 0.0125.
- CONTRACT 3: The Cap shall be X + 0.0250; The Floor shall be X.
- (DOLLAR MULTIPLIER – The Dollar Multiplier shall be 10,000.
(“X” equals the last EUR/GBP price, as reported by the Source Agency).
New AUD/JPY contracts
At the start of trading in a Daily Spread AUD/JPY Variable Payout Contract, Nadex will list one (1) Variable Payout Contract, referred to as a ‘Spread’, which conforms to the following Payout Criteria:
- CAP – The Cap shall be X + 2.50.
- FLOOR – The Floor shall be X – 2.50.
- DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.
In addition, Nadex will list a set of three (3) Variable Payout Contracts with overlapping ranges, which conform to the following Payout Criteria:
- CONTRACT 1: The Cap shall be X; The Floor shall be X – 2.50.
- CONTRACT 2: The Cap shall be X + 1.25; The Floor shall be X –1.25.
- CONTRACT 3: The Cap shall be X + 2.50; The Floor shall be X.
- DOLLAR MULTIPLIER – The Dollar Multiplier shall be 100.
(“X” equals the last AUD/JPY price, as reported by the Source Agency).
Also, Nadex is adding three Daily “Narrow” Currency Spread contracts to the following currency pairs: AUD/USD, EUR/USD, GBP/USD, USD/CAD, USD/CHF, USD/JPY, EUR/JPY, and GBP/JPY.
Nadex is also adding strike levels to its Intraday Crude Oil and US Indices Spread contracts, as well as the Daily US Indices contracts. In a further change, Nadex is increasing the width in its Daily US SmallCap 2000 Spread contracts.
Pending a 10-day review period, the changes will be effective March 28, 2016.
You can view the full Nadex submission with the CFTC by clicking here.