CFTC Commences 90-day Review of NADEX’s Proposed Political Event Derivatives Contracts (Press Release Letter)

CFTC Press Release 6163-12

CFTC Letter to NADEX

NADEX Contracts Submission

Questions Relating to Political Event Contracts

The CFTC issued a letter informing the North American Derivatives Exchange (NADEX) that it has commenced a 90-day review of NADEX's proposed political event derivatives contracts. The review is based on the possibility that these contracts may involve, among other issues, "gaming or an activity that is unlawful under any State or Federal law."

The CFTC requested that NADEX suspend the listing and trading of its proposed contracts during the review period, and has posted NADEX's submission on its website and is seeking public comment on the proposal during a 30-day comment period. In addition, the Commission is seeking public comment on specific questions related to political event contracts to assist in its evaluation of NADEX's submission.

Cross References: CEA Sec. 5c(c)(1); CFTC Rules 40.6(c) 40.11(a) (c).