Nadex Fixes Perpetual Futures Rules: Trading Eternity Gets Tweaked
Published Date: 10/2/2026
Notice
Summary
Nadex is updating the rules for its perpetual cash-settled single stock futures contracts, making trading clearer and smoother for investors. This change affects traders using Nadex’s platform and kicks in immediately, with no extra costs announced. The SEC is asking for public feedback while the CFTC reviews the update, so stay tuned!
Analyzed Economic Effects
11 provisions identified: 5 benefits, 4 costs, 2 mixed.
Three Daily Funding Payments Between Traders
These perpetual single-stock futures will apply a Funding Rate that triggers cash payments between long and short holders at Funding Times of 00:00, 08:00, and 16:00 UTC. When the Funding Rate is positive, long holders pay short holders; when negative, shorts pay longs. The Funding Rate is calculated using a formula that includes a Premium, Interest component, Asset Multiplier, and specified Cap and Floor parameters.
Minimum Customer Margin Set at 15.05%
Customer margin for each perpetual security futures position must be at least 15.05% of the position's current market value, or another amount specified in product specifications or required by CFTC/SEC rules. Margin computations follow a three-tier approach and the rule incorporates applicable SEC and CFTC margin requirements.
Twice-Daily Settlement and Realized P&L Withdrawals
Open positions will be settled twice each business day: a midday settlement at 12:00 ET and an end-of-day settlement at 17:00 ET. At each settlement the position's average open price resets to the settlement price and any unrealized profit or loss becomes realized; realized profit is then available for withdrawal.
Listing Rules Narrow Eligible Stocks
Nadex will list SFPs only on eligible equities that meet initial listing standards (at least 7,000,000 publicly owned shares and at least 2,000 security holders) and maintenance standards (at least 6,300,000 publicly owned shares, at least 1,600 shareholders, minimum average daily value traded of $200 million for the prior quarter or $1 billion if listed less than a quarter, minimum market capitalization of $50 billion, and market price per share not closed below $3.00).
Market‑Maker Margin Exclusion with Quoting Obligations
Nadex proposes a market-maker exclusion from customer margin requirements for qualifying security futures dealers if they meet specified quoting and volume obligations. Qualifying market makers must meet continuous quoting or request-for-quote responsiveness standards, and beginning on the 181st calendar day after commencement of trading must provide a 'meaningful proportion' of volume, defined as at least 20% of exchange trading volume.
One-Share Contracts with Fractional Minimum Trade
Each contract represents 1 share of the underlying stock and the minimum trade size is 0.01 contract, allowing fractional contract trading. Prices are quoted to two decimals with a minimum tick of $0.01 for a one-share contract.
24/5 Trading Availability
Perpetual single-stock futures will trade continuously 24 hours a day, 5 days a week (subject to underlying-market availability and Nadex rules). The Exchange contemplates trading under Nadex Rule 5.18 but expressly notes 24/5 trading for SFPs.
Position Limits Capped at 2,500,000 Contracts
Position limits for each single-stock future are generally set at 2,500,000 contracts (with 1 share per contract); any applicable limit or accountability level will be published in contract specifications or on Nadex's website. These limits are applied in accordance with CFTC Regulation 41.25(b)(3).
Access Requires Registered FCM and Broker‑Dealer
Members with access to trade these SFPs must be registered with the CFTC as a futures commission merchant (FCM) and registered with the SEC as either a broker-dealer or notice-registered broker-dealer. Trading in SFPs is subject to Nadex market surveillance and applicable registration rules.
Limited Types of Acceptable Margin Assets
Acceptable margin that intermediaries may accept from customers is limited to cash, margin securities (with restrictions), exempted securities, or other assets permitted under Regulation T. Securities issued by the customer or an affiliate generally cannot be accepted as margin without Exchange permission, and all deposited assets must remain unencumbered.
Insiders and Persons with Material Non‑Public Info Barred
Individuals who are directors or officers of the issuer of an underlying security, or other persons in possession of material non-public information regarding the issuer, are prohibited from trading the related SFPs under Nadex rules.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-19260, Rescission of Rule 14a-8's Federal Regulation of Shareholder Proposals and Amendments to Rule 14a-4
The SEC wants to stop its federal rule that controls how shareholders can make proposals at company meetings, letting state laws and company rules take over instead. They’re also changing rules so companies can sometimes vote on proposals not in their official materials—but shareholders can opt out if they want. This affects investors and companies, with comments open until November 20, 2026, and could shake up how shareholder voices are heard and counted.
2026-18424, Political Contributions by Certain Investment Advisers
The Securities and Exchange Commission (the "Commission" or the "SEC") is proposing to rescind the political contribution rule under the Investment Advisers Act of 1940 (the "Advisers Act"), which prohibits investment advisers from providing investment advisory services for compensation to a government client for two years after an adviser or any covered associate of the adviser makes a contribution to certain categories of elected officials or candidates, among other prohibitions. In the more than fifteen years since the rule was adopted, implementation challenges associated with the political contribution rule have resulted in a range of significant unintended consequences, including compliance practices among some investment advisers that may have had the effect of restricting all political contributions by the investment advisers and their employees. Market participants also have stated that the political contribution rule is burdensome, complex, and both lacks clarity and creates a de facto strict liability standard. The Commission is of the view that other existing requirements of the Advisers Act and its associated rules, including prohibitions on fraud, fiduciary duty requirements, the compliance rule, and the code of ethics rule (defined below), are likely sufficient to address pay-to-play practices while allowing an adviser the flexibility to implement an approach that is more appropriately tailored to its particular risks, rendering the political contribution rule unnecessary. The Commission also is proposing to amend the rule under the Advisers Act pertaining to books and records consistent with the proposed rescission.
2026-18190, Transfer Agent Rules
The U.S. Securities and Exchange Commission ("SEC" or "Commission") is proposing to adopt new rules, amend existing rules, amend the existing form for registration with the Commission as a transfer agent (Form TA-1) and the existing form for reporting activities of transfer agents (Form TA-2), and rescind an existing rule governing registered transfer agents. The proposals are designed to modernize the rules governing registered transfer agents.
2026-17183, Regulation Crypto Assets
The Securities and Exchange Commission ("Commission") is proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets. The proposed offering regime is intended to facilitate capital formation and accommodate innovation within the crypto asset markets while, at the same time, ensuring that investors are adequately protected and provided with the information they need to make informed investment decisions. The proposed rules would be set forth in a new regulation titled "Regulation Crypto Assets" and would include two exemptions from the registration requirements of section 5 of the Securities Act of 1933. The first exemption would permit offerings of up to $5 million during a four-year period. The second exemption would permit offerings of up to $75 million during each 12-month period. Under both exemptions, issuers would be required to make certain principles-based narrative disclosures available to their investors. In addition, issuers under the second exemption would be required to provide financial statements and would be subject to ongoing reporting requirements. Issuers that rely on these exemptions would remain subject to the antifraud and antimanipulation provisions of the Federal securities laws. The proposed rules also would include a conditional safe harbor from the term "investment contract" in the definitions of "security" in the Securities Act of 1933 and the Securities Exchange Act of 1934. If the conditions of that proposed safe harbor are satisfied, then a crypto asset would be deemed not to be subject to an investment contract for purposes of those definitions of "security."
2026-12163, The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
2026-10373, Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
Previous / Next Documents
Previous: 2026-20193, Self-Regulatory Organizations; Nasdaq Texas, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Modify the Rule 5000 Series to Transition to a Primary Listing Venue
Nasdaq Texas is updating its Rule 5000 Series to become a primary place where companies can list their stocks. This change affects companies wanting to list or delist on Nasdaq Texas and will kick in after a public announcement expected in mid-2027. The update aims to simplify rules and improve how listings work, with no immediate cost changes announced.
Next: 2026-20195, Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend NYSE American Rule 903G
NYSE American is updating its rules for FLEX options on ETFs, letting bigger and busier ETFs qualify for cash settlement. This change affects traders using FLEX equity options and kicks in right away, aiming to keep things smooth if an ETF stops trading or changes. No new fees are mentioned, but the new rules set clear steps to handle these options better.