Nadex adopts perpetual cash-settled single-stock futures rule

Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 and Rule 19b-7, the North American Derivatives Exchange, Inc. (Nadex) filed a proposed rule change on September 24, 2026 (Release No. 34-106521; File No. SR-OGM-2026-001). The SEC is publishing this notice on September 29, 2026 to solicit comments, and the filing is effective immediately.

The filing adopts a new Chapter 16 governing "perpetual security futures products" that are cash-settled, have no fixed expiration, and represent one share of an eligible underlying stock. Eligible securities include large-cap equities such as Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta (META), Microsoft (MSFT), Nvidia (NVDA) and Tesla (TSLA), with specific instruments to be listed on Nadex's website or by notice.

Key contract specifications are: a contract size of one share (Rule 16.02(d)); quotation in U.S. dollars to two decimal places with a $0.01 minimum tick (Rule 16.02(e)); a position limit of 2,500,000 contracts per SFP (Rule 16.02(g)-(h)); continuous 24-hour, five-day-a-week trading (Rule 16.02(c)); and periodic real-time pricing mechanism cash adjustments at 00:00, 08:00 and 16:00 UTC (Rule 16.14). Trading halts apply when regulatory halts are imposed on the underlying security (Rule 16.02(l)).

Open positions settle twice daily - midday at 12:00 ET and end-of-day at 17:00 ET - resetting the average open price to the settlement price (Rule 16.08(a)). Upon termination, the settlement price is the official opening price of the underlying on its primary exchange, with cash settlement and a three-tier waterfall distribution (Rule 16.08(a)-(b), Rule 16.15). The CFTC has not yet approved the rule change, which remains pending under Section 5c(c) of the Commodity Exchange Act.