The Commodity Futures Trading Commission has notified the North American Derivatives Exchange, Inc. (Nadex), doing business as Crypto.com, that it will initiate a review of two sports contracts the exchange self-certified and submitted on 19 December 2024, and has requested that Nadex suspend listing and trading of the contracts during the review period. The contracts are described as cash-settled, binary contracts based on (i) the association participant that becomes the title holder for an association’s annual title event and (ii) the hometown that hosts a celebration for that title holder on a specified date. 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, triggering the review process and the request to halt listing and trading under CFTC Regulation 40.11(c)(1).
Commodity Futures Trading Commission 2025-01-14
Commodity Futures Trading Commission initiates review of Nadex Crypto.com sports event contracts and requests trading suspension
The Commodity Futures Trading Commission (CFTC) has initiated a review of two sports contracts self-certified by the North American Derivatives Exchange, Inc. (Nadex), operating as Crypto.com. The contracts, which are cash-settled and binary, may involve activities under CFTC Regulation 40.11(a) and section 5c(c)(5)(C) of the Commodity Exchange Act. Nadex has been requested to suspend listing and trading of these contracts during the review.