North American Derivatives Exchange, Inc (Nadex) has self-certified the terms and conditions for its new Political Party Election Outcome Event Contract.

These contracts will be listed on or after trade date November 7, 2025.

The Event Contract is a financial instrument designed to express a market view related to the outcome of an election. There are broad economic and commercial impacts related to the outcome of an election, with substantial micro- and macroeconomic repercussions.

The new contract operates in a manner equivalent to economic event contracts that Nadex and other designated contract markets have certified for trading. As an example, for an Event Contract with a notional value of $1, price bands will apply so that the Contract will be listed at increments of at least $0.01 and at most $0.99 with a minimum price fluctuation of $0.01, to enable Members to match the size of the contracts purchased to their economic risks.

At least one dedicated market maker that is committed to providing immediate liquidity will participate upon the Event Contract’s launch.

During the Event Contract trading hours, Members are able to adjust their positions and trade freely. After trading of the Event Contract has closed, the Exchange will determine the Expiration Value and whether the Payment Criteria encompasses the Expiration Value (i.e., whether the market outcome is “Yes” or “No”).

The market is then settled by Nadex, and either the long position holders or the short position holders are paid the Settlement Value. In this case, “long position holders” refers to Members who purchased the “Yes” side of the Event Contract and “short position holders” refers to Members who purchased the “No” side of the Event Contract.

If the Expiration Value is “Yes”, then the long position holders are paid an absolute amount proportional to the size of their position and the short position holders receive no payment. If the Expiration Value is “No,” then the short position holders are paid an absolute amount proportional to the size of their position and the long position holders receive no payment.