By Darrell Martin
Being a CFTC (Commodity Futures Trading Commission) regulated exchange, Nadex, the North American Derivatives Exchange, is committed to the highest standard of ethics and conduct. Because of recent communication with the Ontario Securities Commission (OSC) regarding Nadex members residing in Canada and exploring the opportunity to establish a formal presence throughout Canada, at this time, Nadex has decided to stop accepting new applications from Canadian residents. They will also be closing existing members’ accounts.
This is a recent policy change and will take effect immediately. Members were contacted via email and informed, “If you have any open positions, you can exit them or let them expire. After the close of the Exchange on Friday you will not be able to deposit additional funds to your account or enter any new trades.”
Further instructions were given regarding the disbursement of funds. It is rare to see such a bold move and commitment not only to regulation but also to the traders in the world. To send funds back to clients without any kind of long delay is refreshing in the world of binaries. And to be in the front of regulation only stands to Nadex’s continued strength as an exchange that will continue to stand the test of time and evolving regulation and market dynamics. The email closed with the following remarks: “If our policy changes in the future we will be sure to let you know, but at this time, we can’t say if or when that will happen. In the meantime, we wish you all the best and thank you for being a Nadex member.”
In response to a question regarding the importance of Canada as a market for Nadex, they said, “We very much value our relationship with all of our members, including those from Canada. As a CFTC regulated exchange in the United States though, it is very important for us to make sure we are doing everything properly for the safety and confidence of our members in every jurisdiction.”
In this case, having a formal presence in a country would involve Nadex being registered with the OSC. The above quote reflects Nadex’s commitment to do everything properly. An article on financemagnates.com relates how Nadex views Canada as a growing and viable market for its products. Because of this, it is seeks to establish an official presence there. Nadex wishes to be registered as a recognized exchange by OSC.
Around the world there are other brokers who offer binary options, but they do not wish to have a formal presence in the places where their members trade. They are known as bucket shop binary brokers and may base their practices on the regulations, but are not regulated, adding additional risk to trading. There is the possibility that OSC will move to ban the bucket shop binary brokers whom do not have a formal presence.
If you are a Nadex member residing in Canada, this policy change may make you feel that your trading days are over. Nadex does not know when their policy will change, but it only makes sense that after everything is filed, they will return to Canada in full force. Until that time, there are other ways you can continue to trade Forex, futures, binaries, and CFD’s, Visit www.apexinvesting.com where you can be directed to a few resources to help you in your trading during the interim.
Information Sources: http://www.financemagnates.com/binary-options/regulation/nadex-closes-canadian-accounts-but-explores-options-to-return/
To learn more go here: 7 Solutions For Canadian Traders With Nadex Canadian Exit