Technical Issues Momentarily Stop 5 Minute Contracts Listing at Nadex

The exchange had to resort to settling expired trades with Reuters’ underlying data rather than its own.

The North American Derivatives Exchange Inc. (Nadex) had placed a momentary stop on Intraday five-minute currency related contracts, starting with the 06:40 pm ET expiration.

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The exchange brought them back, starting off with the 07:05 pm ETs. This move seems to have occurred as result of technical difficulties revolving around the underlying data feed. The course of action Nadex decided to take had been pursuant to the exchange’s Rule 12.1 (h).

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Any Intraday trades that had expired between 06:05 and 06:30 pm were settled by use of the underlying data provided by Reuters. One example of this trade was the Intraday five minute GBP/JPY binary contract, which had expired at 06:35 pm. Usually, the exchange settles trades while using its self-provided data, the NadexFX data feed.

Technical Issues? Not a First

This is not the first time that Nadex has had to stop certain listings. In November, Nadex had to take similar action regarding its Bitcoin binary contracts. A notice had been issued with the Commodity Futures Trading Commission (CFTC). In this case, the technical issue had resulted in the market maker’s inability to price the contracts. Following low liquidity in Nadex’s Bitcoin contracts, the exchange made the decision to hold back on listings until the pricing had resumed in the market.

In June 2016, the exchange resumed offering Bitcoin contracts that had been off the listings due to technical difficulties the preceding February. Back then, the underlying Tera Bitcoin Price Index had been unavailable.

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