CFTC’s Review of Nadex Sports Contract Submissions
WASHINGTON, D. C. — The Commodity Futures Trading Commission today
notified the North American Derivatives Exchange, Inc. (Nadex) d/b/a
Crypto. com it will initiate a review of the two sports contracts that
were self-certified and submitted to the CFTC on Dec. 19, 2024. As
described in the submissions, the contracts are cash-settled, binary
contracts.
The contracts are based on the following underlying
events:
• The association participant that is a title holder
for the association title event for a given calendar year (Title
Event). The association participant refers to any of the association
participants in a given association, such as the National Football
League, the National Hockey League, and/or the National Collegiate
Athletic Association. Nadex’s publicly-filed title event contract
submission is available here.
• The hometown that hosts a
celebration, such as a parade hometown celebration, for the
association participant that is the title holder for an association in
a given calendar year on a given date in recognition of the outcome of
the Title Event. Nadex’s publicly-filed hometown celebration contract
submission is available here.
The CFTC determined the
contracts may involve an activity enumerated in CFTC Regulation 40.
11(a) and section 5c(c)(5)(C) of the Commodity Exchange Act. As
required under CFTC Regulation 40. 11(c)(1), the CFTC has requested
that Nadex suspend any listing and trading of the two sports contracts
during the review period.