Nadex Closes Canadian Accounts but Explores Options to Return
- The CFTC-regulated venue decided to stop accepting applications from Canadian residents and to close existing Canadian members’ accounts.
The North American Derivatives Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (Nadex) has confirmed to Finance Magnates that it is no longer accepting Canadian residents as members. They explained that they have been in communication with the Ontario Securities Commission regarding members residing in Canada and were exploring the opportunity to establish a formal presence throughout Canada. While Nadex is exploring this opportunity, they have decided to stop accepting new applications from Canadian residents and to close existing Canadian members’ accounts.
Asked about the importance of Canada as a market for Nadex, they answered: “We very much value our relationship with all of our members, including those from Canada. As a CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term regulated exchange in the United States though, it is very important for us to make sure we are doing everything properly for the safety and confidence of our members in every jurisdiction.”
From a short-term perspective, it was only fairly recently on the overall timeline of the venue during which they started accepting members from Canada, so the immediate impact to Nadex is expected to be somewhat minimal. Additionally, its rival Cantor Exchange (CX) is not allowing non-US applicants to fund accounts so it probably won't gain from this move.
From a long-term perspective however, Nadex views Canada as a growing and very viable market for its products, which is why, and as mentioned before, Nadex is exploring the opportunity to establish a formal presence.
In November, we reported that Nadex introduced a new order type called the Market Order with Protection (MOP).
The North American Derivatives Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (Nadex) has confirmed to Finance Magnates that it is no longer accepting Canadian residents as members. They explained that they have been in communication with the Ontario Securities Commission regarding members residing in Canada and were exploring the opportunity to establish a formal presence throughout Canada. While Nadex is exploring this opportunity, they have decided to stop accepting new applications from Canadian residents and to close existing Canadian members’ accounts.
Asked about the importance of Canada as a market for Nadex, they answered: “We very much value our relationship with all of our members, including those from Canada. As a CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term regulated exchange in the United States though, it is very important for us to make sure we are doing everything properly for the safety and confidence of our members in every jurisdiction.”
From a short-term perspective, it was only fairly recently on the overall timeline of the venue during which they started accepting members from Canada, so the immediate impact to Nadex is expected to be somewhat minimal. Additionally, its rival Cantor Exchange (CX) is not allowing non-US applicants to fund accounts so it probably won't gain from this move.
From a long-term perspective however, Nadex views Canada as a growing and very viable market for its products, which is why, and as mentioned before, Nadex is exploring the opportunity to establish a formal presence.
In November, we reported that Nadex introduced a new order type called the Market Order with Protection (MOP).