Nadex Receives Certain CFTC Exemptive Relief Due To Its Different Business Model
- The IG Group subsidiary operating under the name North American Derivatives Exchange, known as Nadex, just had its request granted by the CFTC for relief from specific requirements deemed not applicable to its business.
The Commodity Futures Trading Commission has just announced that it issued exemptive and interpretive letters providing relief from certain otherwise binding regulatory requirements that it has since deemed are not applicable to 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, known as Nadex, a subsidiary of UK headquartered Broker IG Group.
One of the only two known firms in the U.S to offer binary options style FX trading on a regulated Derivatives Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term Organization (DCO) facility, Nadex has just reported its best metrics in its history, as reported by Forex Magnates earlier in January 2014
The CFTC has also amended Nadex's registration order, on its own initiative, and approved the amendment for Nadex to better align the terms and conditions of Nadex’s registration order with the Commodity Exchange Act, as amended by the Dodd-Frank Act, and the Commission’s current regulations, according to the CFTC press release.
The exemptive letter and interpretive letter by the CFTC was in response to a request from Nadex, based on its registration status as a registered derivatives clearing organization (DCO), and the CFTC's Division of Clearing and Risk (DCR), acting under delegated authority from the CFTC, issued the exemptive letter that grants Nadex relief from certain provisions of the Commission’s regulations applicable to DCOs, and also issued the interpretative letter that addresses the applicability of certain regulatory provisions to Nadex.
The request from Nadex was noted as having been prompted by the Commission’s 2011 adoption of regulations that implemented Dodd-Frank Act amendments to the Commodity Exchange Act “core principles” for DCOs. These regulations address issues that arise in connection with a typical intermediated derivatives clearing model, However, as described in the official press release, Nadex’s clearing model is different in that it features non-intermediated clearing of transactions in fully-collateralized products.
Because of this, according to the CFTC, Nadex requested that DCR provide relief from compliance with regulatory provisions that are inapplicable to Nadex’s model, and it requested an interpretation regarding applicability of and compliance with other regulatory provisions, hence the provided interpretation letter in today's announcement.
The news follows Nadex's former CEO, Yossi Beinart's appointment to take the helm of the Tel Aviv Stock Exchange, and departure from Nadex on the heels of its record volumes for 2013.
Related articles
The Commodity Futures Trading Commission has just announced that it issued exemptive and interpretive letters providing relief from certain otherwise binding regulatory requirements that it has since deemed are not applicable to 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, known as Nadex, a subsidiary of UK headquartered Broker IG Group.
One of the only two known firms in the U.S to offer binary options style FX trading on a regulated Derivatives Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term Organization (DCO) facility, Nadex has just reported its best metrics in its history, as reported by Forex Magnates earlier in January 2014
The CFTC has also amended Nadex's registration order, on its own initiative, and approved the amendment for Nadex to better align the terms and conditions of Nadex’s registration order with the Commodity Exchange Act, as amended by the Dodd-Frank Act, and the Commission’s current regulations, according to the CFTC press release.
The exemptive letter and interpretive letter by the CFTC was in response to a request from Nadex, based on its registration status as a registered derivatives clearing organization (DCO), and the CFTC's Division of Clearing and Risk (DCR), acting under delegated authority from the CFTC, issued the exemptive letter that grants Nadex relief from certain provisions of the Commission’s regulations applicable to DCOs, and also issued the interpretative letter that addresses the applicability of certain regulatory provisions to Nadex.
The request from Nadex was noted as having been prompted by the Commission’s 2011 adoption of regulations that implemented Dodd-Frank Act amendments to the Commodity Exchange Act “core principles” for DCOs. These regulations address issues that arise in connection with a typical intermediated derivatives clearing model, However, as described in the official press release, Nadex’s clearing model is different in that it features non-intermediated clearing of transactions in fully-collateralized products.
Because of this, according to the CFTC, Nadex requested that DCR provide relief from compliance with regulatory provisions that are inapplicable to Nadex’s model, and it requested an interpretation regarding applicability of and compliance with other regulatory provisions, hence the provided interpretation letter in today's announcement.
The news follows Nadex's former CEO, Yossi Beinart's appointment to take the helm of the Tel Aviv Stock Exchange, and departure from Nadex on the heels of its record volumes for 2013.