Nadex seeks to amend number of Directors that may be appointed to its Board
Under the new rules, Nadex will have a board of directors consisting of no fewer than five and no more than seven directors.
North American Derivatives Exchange (Nadex), a subsidiary of IG Group Holdings plc (LON:IGG), has filed a notice with the Commodity Futures Trading Commission (CFTC) outlining planned rule changes.
In particular, the Exchange seeks to amend its Rule 2.3 (Officers of Nadex) to amend the number of Board Directors that may be appointed, and remove references to the position of “Chief Operating Officer”.
The existing rules stipulate that Nadex has a five-member board of directors. According to the planned changes, Nadex will have a board of directors, consisting of no fewer than five (5) and no more than seven (7) directors elected by a majority vote of all shareholders of Nadex.
The changed rules remove the reference to COO. Thus, Nadex has a chief executive officer, secretary, chief financial officer, chief regulatory officer, chief compliance officer, and other such officers from time to time as appointed by the board of directors or the shareholders (collectively, the “Management Team”). There will be no mention of COO.
Under the amended rules, in the absence of the chief executive officer, the executive officer in charge of operations (instead of the chief operating officer) will perform the chief executive officer’s duties.
Additionally, Nadex is amending its Rule 10.3 (Arbitration of Nadex Member Disputes) to remove reference to the National Futures Association. The amended rule states:
“Any dispute, controversy, or claim brought against Nadex by any Member shall be submitted to binding arbitration in Cook County, Illinois. Unless the arbitrator or arbitrators find that one of the parties has acted in bad faith, each party will pay its own expenses. Upon request of either party the arbitrator or arbitrators will make a finding as to whether Nadex has acted in a manner that is grossly negligent, reckless, or fraudulent”.
Pursuant to the 10-day filing period under Regulation 40.6(a), the changes to the rules will become effective February 28, 2020.