Binary Options Go West! NADEX Achieved Best Ever Results In 2013

Binary options exchange NADEX has announced a record year in exchange-traded binary options and spread contracts, amounting to a 106% increase when compared with the previous year.

The regulatory furore which surrounds the method by which OTC binary options products are sold in different jurisdictions has been a source of both bemusement and opportunity for many companies during 2013, with Japan having finalized its entire regulatory structure, requiring re-engineering of trading platforms intended for that particular market, and North America conducting a clampdown on firms soliciting OTC binary options in its territory.

Whilst one particular binary options brand is currently bearing the brunt of an ongoing lawsuit instigated by the Commodity Futures Trading Commission for offering such a product in a market where the marketing of OTC binary options is illegal, dedicated binary options exchange NADEX has announced today that it enjoyed record results during last year in terms of trading volume.

According to NADEX, the exchange experienced a 106% increase in binary options and spread contracts traded year-over-year. The most heavily traded contracts on the exchange during 2013 were the USD/JPY currency pair and the US 500.

“Our record volume performance in 2013 demonstrates consistent progress for NADEX and is a measure of the success we have had in providing a fully transparent platform to trade binary options and spreads for traders,” stated NADEX General Counsel and Chief Regulatory Officer, Tim McDermott in a commercial statement.

“Our growth in volumes can also be attributed to the enhanced efficiency of our trading platform as well as building closer relationships with trading members,” he continued.

With the National Futures Association’s regulatory stance on the illegality of trading binary options on an OTC basis in its jurisdiction, combined with its ability to censure overseas firms which seek to provide such products to American customers, binary options can only be traded via two dedicated binary options exchanges, one of which is NADEX, the other being Cantor Exchange, therefore providing clients with complete peace of mind and security that their funds are safe and that prices are completely transparent, whilst at the same time providing something of a captive audience to these venues.


Yossi Beinart
President, NADEX

NADEX, which is a subsidiary of IG Group, has garnered considerable interest from platform providers as the technology firms assess the required developmental input in order to create exchange-compatible binary options platforms in order to participate in the US market. If such moves are made by the larger platform companies, trading volumes at NADEX could increase further as more order flow is channeled through the exchange.

With the release of these results, an interesting correlation between regulation and profitability within binary options is apparent, as not only did this North American exchange outperform the previous year by a significant margin, but Japan, which now also applies stringent regulatory oversight to its binary options firms, also played host to higher profitability than that of FX within its own domestic market during October.

Under the steerage of highly respected financial services senior executive Yossi Beinart, NADEX achieved these results, with Mr. Beinart having been elected to the prestigious position of heading the Tel Aviv Stock Exchange during what can be considered a poignant year in his career.



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