Nadex set to implement inactivity fee

Maria Nikolova

Direct Trading Members that have a dormant account will incur an inactivity fee of $10 per month.

North American Derivatives Exchange (Nadex), a subsidiary of IG Group Holdings plc (LON:IGG), has unveiled its plans to charge inactivity fees on dormant accounts.

Pursuant to Section 5c(c)(1) of the Commodity Exchange Act, as amended (“Act”), and section §40.6(a) of the regulations promulgated by the Commodity Futures Trading Commission (CFTC) under the Act, NADEX submitted to the CFTC on April 17, 2020 a notice about its plans to implement a dormant account inactivity fee of $10.00 per month.

Direct Trading Members that have a dormant account, that is, an account that has not engaged in any trading activity for a period of 12 consecutive months, will incur an inactivity fee of $10.00 per month.

If at any time a Direct Trading Member’s account is subject to an inactivity fee but the account balance less than $10.00, Nadex will reduce its fee to the amount of the remaining account balance bringing the balance to $0. No account balance will become negative as a result of the inactivity fee. A Direct Trading Member that engages in trading activity after a 12 month dormancy will not be changed an inactivty fee until the account again becomes dormant.

A dormant account that has a $0 balance may be terminated by Nadex pursuant to Rule 3.3.

Additionally, Nadex is amending the fees it charges duly appointed Market Makers.

After the changes, Nadex will charge its non-intermediated Market Makers an Exchange trading fee of $0.70 per contract per side (compared with previously charged $0.50) for each Binary and Call Spread trade executed on Nadex. and $0.50 per contract per side for each Touch Bracket Knock-Out trade executed on Nadex.

Regarding settlement fees, after the changes, Nadex will charge its non-intermediated Market Makers an Exchange settlement fee of $0.70 (previously $0.50) per contract per side for each Binary and Call Spread contract that settles in-the-money and $0.50 per contract per side for each Touch Bracket Knock-Out contract that settles in-the-money. If the total fee to be charged for the position exceeds the total settlement payout for that position, Nadex will reduce its fee to the amount of the total settlement payout for that position (that is, Nadex will not charge a settlement fee that exceeds a settlement payout).

Nadex will also be suspending the Wide Spread Surcharge Market Makers incur until further notice.

Changes to the Market Maker fee are set to become effective on May 4, 2020. The dormant account inactivity fee will be implemented July 1, 2020.

Read this next

Metaverse Gaming NFT

Despite crypto winter, Fastex grabs $23.2 million in Fasttoken token sale

Fasttoken, part of the Fastex web3 ecosystem, has secured $23.2 million in financing through the private and public token sales of its native cryptocurrency Fasttoken (FTN).

Digital Assets

Iran to repay Russian debts in gold-backed stablecoins

A high-ranking member of the Russian parliament confirmed reports that his country was in talks with Iran to create a stablecoin for foreign trade settlements, to replace the dollar, ruble and Iranian rial.

Digital Assets

SEC denies Cathie Wood’s bitcoin ETF for second time

The approval of a regulated crypto derivative is still looking far less likely, as the US regulators have once again denied Cathie Wood’s application for a long-awaited spot bitcoin exchange-traded fund (ETF).

Executive Moves

Pavel Spirin promoted to Scope Markets CEO following Rostro acquisition

Belize-based FX and CFDs brokerage Scope Markets has promoted Pavel Spirin to take on an expanded role as the company’s chief executive officer. He replaces the outgoing CEO Jacob Plattner, who has also been a major shareholder since he resigned his position as managing director at GKFX.

Retail FX goes all-in on alternative investing, launches Rare Sneaker Portfolio

“The concept of curated Portfolios means that our members will be able to invest in categories like art, trading cards, royalties, and real estate without needing to become subject matter experts on individual assets.”

Industry News

State Street taps AWS and Microsoft for cloud and infrastructure solutions

“By standardizing and simplifying our technology operating model, we will be able to more quickly deploy client environments and launch new products and services, while continuing to enhance the resiliency of our technology environment and our business operations.”

Institutional FX

Bitpanda launches Investment-as-a-Service business for banks, fintechs, online platforms

“Financial institutions today have to ask themselves how they aim to cater the increasing demand for modern investing solutions. Building these Individually, means a high startup cost, and products that are often outdated before they are even launched.”

Institutional FX

Options expands market data feeds after partnership with Tools for Brokers

“Our integration with ACTIV Financial marked the beginning of a new era in market data availability and infrastructure. Our teams have come together to provide unparalleled, fully managed market data services alongside Options’ global connectivity and infrastructure.”

Industry News

Recruitment in financial services sector buoyant despite planned mass layoffs

“It remains to be seen what impact this will have on hiring levels within the financial services arena this quarter”, said APSCo, regarding the expected mass layoffs within the financial services sector in England & Wales.