Nadex Q3 2015
For the third time this year month-on-month record Nadex volumes have been reported, which appear on the face of it pretty impressive. Unfortunately Nadex leaves a gap in that data; the growth performance of Q2 14 over Q2 13 is omitted along with the same data for Q3 ’14 and Q4 ’14.
What is available is the total volume of in excess of 2.3m contracts for the whole of 2013, which, in itself, exceeded the equivalent number for 2012 by 106%. Furthermore, the increase of 49.8% in Q1 ’14 over Q1 ’13 is a healthy increase and this has been followed by a further increase of 38% on Q1 ’15 over Q1 ’14.
Smoke and Mirrors
The 53% and 70% increases in Q2 ’15 and Q3 ’15 respectively quite frankly do not mean a great deal since the numbers are not available from a year earlier. A cynic might suspect that the missing data has been purposely omitted owing to the growth being negative thereby rendering the Q2 ’15 and Q3 ’15 numbers ‘smoke and mirrors’ window dressing. The fact that the Nadex press release states that: “On August 31, volume traded since January surpassed the total for all of 2014” rather supports that theory.
What would be of real benefit though would be for Nadex to issue its volume data in terms of contracts traded on a monthly basis. I think most commentators would be able to figure out for themselves what the percentage increases (or decreases) might be and thus a more valuable reflection of Nadex’s performance could be inferred, although this might not suit Nadex, of course.
At the same time Cantor’s might wish to do the same for their own binary options exchange………….
In the same press release Nadex acclaim their new educational website binaryoptions.nadex which “provides trading tips and strategies as well as information on the benefits of exchange-traded binary options.” Nadex are apparently “….working actively to educate the public about legal, trustworthy ways to participate in the markets.” No doubt Nadex will in future underline their trustworthy credentials by providing regular data on their contract volumes as opposed to selective data on their quarter on quarter annual growth rate?