America’s mandatory exchange-traded binary options business made substantial progress in the inaugural months of 2014 as NADEX releases quarterly results
The North American Derivatives Exchange (NADEX) announced late last week that its 2014 first quarter (Q1 2014) exchange volume of binary options and spread contracts traded increased 49.8% quarter-over-quarter from the same period in 2013. The most heavily traded contracts on the exchange in Q1 2014 were the US500 and USD/JPY.
According to NADEX, a significant part of the growth in volumes is due to an increase in the binary options exchange’s overnight trading activity following the addition of more listings available to overnight traders in several FX contracts as well as the Japan 225 binary options. This growth in trading volumes reflects a similar growth in the number of active traders on the Exchange.
“We have seen a record number of active traders trading in the first quarter, building on the great momentum Nadex achieved in 2013,” said Tim McDermott, CEO designate at NADEX. “This consistent, broad-based growth reflects a rising interest in binary options as this new way of trading becomes more popular among U.S. traders. We are pleased to see this level of engagement continue with the exchange’s members and anticipate that, as retail traders become more familiar with binary options, trading volumes will continue to increase.”
North America’s well organized and strictly regulated binary options industry, therefore, is on the increase which could encourage platform providers to engineer their solutions to accommodate compatibility with the two binary options exchanges which operate in accordance with NFA regulations which stipulate that OTC binary options are illegal in the United States. NADEX, part of IG Group, made a steady start to its approach of the domestic market, which now appears to be making its position clear as the lynchpin of American binary options trading.
The company had been steered from its inception by highly experienced Chicago-based exchange executive Yossi Beinart, who was last year appointed CEO of the Tel Aviv Stock Exchange.