The prohibition of OTC binary options trading in North America by the National Futures Association (NFA) has rendered the United States a very transparent region in which to trade fixed contracts which have a predetermined expiry date and a win or lose outcome.
US authorities insist that all binary options trades within the United States must be conducted through one of two dedicated exchanges, namely Cantor Exchange and NADEX.
Co-Founder and Director of Karinza, James Azar, explains how he considers the recent influx of binary options trading platforms onto North America’s exchanges.
For those who followed the recent development in the Binary Option market it is no secret that a week ago Cantor Fitzgerald exchange in the U.S. signed deals with SpotOption, TRADOLOGIC and TechFinancials to offer legal binary option trading through their exchange for those tech companies respective white labels.
While for many this is great news as it opens the doors to one of the most lucrative markets for Binary Options to the global community one can’t wonder where NADEX is or was in this mix.
Did Canter Exchange just cut the deal AT&T did with the iPhone back in 2007. AT&T was able to grow its customer base and ARPU with this deal that eventually lead to them overtaking Verizon wireless in both categories until the exclusivity on the iPhone expired.
This could very well be the situation. In fact Canter Exchange move is ultimately going to increase competition in the U.S. market, allow a safe passage for brokers wishing to operate there with no legal risk and provide US consumers protection while trading binary options.
The missing piece here for many is the fact that online gambling is still illegal and with regulation in place requiring online casinos to partner with land based casino in order to legally operate one can see this move is essentially based on the premise. Partner with a local exchange Canter Exchange, work within the same framework and we will be happy to have you market your firm in the US legally.
The U.S. is proven to be a very lucrative market for many binary option companies. Many view binary options as a replacement to online gambling but with a financial shell.
As it stands today, the very first few brokers stand to test the waters of the new rules in place and the profitability of the market under its new legal conditions and the difficulty of operating within compliance of the strict CFTC and NFA rules and regulations who are known to have no gray areas and no wiggle room in operating and building a broker business in the U.S.
These first few brave souls that dare to enter will be poised to lead the marketplace and provide an indication to the viability of binary options in the U.S.
This is a very exciting time for Binary option brokers, U.S. traders and investors as increased competition should lead to better trading conditions and safer trading. Only time will tell if this move by Cantor Exchange will allow it to overtake NADEX and boost its business as it envisioned when it negotiated this deal.
This is a Guest Editorial which was compiled by and represents the viewpoint of James Azar, Co-Founder & Director, Karinza