The North American Derivatives Exchange (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 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.
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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).