Japanese Binary Options Volumes Continued Stagnating in April

Tuesday, 19/05/2015 | 10:16 GMT by Victor Golovtchenko
  • The Japanese regulator has provided its newest set of data on binary options which suggest that growth is not around the corner
Japanese Binary Options Volumes Continued Stagnating in April
(Photo: Bloomberg)

The latest set of data from the Financial Futures Association of Japan (FFAJ) reveals that the long-awaited continuation of growth in trading volumes and binary options accounts is not materializing. The figures continue to show a stagnating market for the product in the country.

Trading volumes totaled ¥41.6 billion ($346 million) for the eight companies which are currently operating on the Japanese binary options market. The figure is 26 percent lower when compared to the month of March. Volatility on the local currency market has remained stagnant and this surely has had an impact on volumes.

Any correlations between foreign Exchange volatility and volumes are virtually non-existent. A year ago, in a similar volatility construct, trading volumes figures were almost three times higher. At the time, our reporters speculated that since there was little volatility in FX, some traders could have made a switch to trading binary options.

This year we are not seeing anything remotely resembling last year’s phenomenal spike in April as volatility in the Japanese yen is dormant once more. The other figure that suggests a continuing stagnation of the market is the number of active trading accounts which barely moved in April. The figure increased 2% month-on-month to 14,515 and 20% year-on-year.

The 20% increase in the number of active accounts remains a non-factor when we look at the overall trading volumes which were close to ¥118 trillion last April.

Trading activity was focused mainly on the Japanese yen crosses and the EUR/USD in April. Activity in the GBP/JPY has also been substantial, in the run up to the elections in May.

Japan-Binary_April-Volumes

The latest set of data from the Financial Futures Association of Japan (FFAJ) reveals that the long-awaited continuation of growth in trading volumes and binary options accounts is not materializing. The figures continue to show a stagnating market for the product in the country.

Trading volumes totaled ¥41.6 billion ($346 million) for the eight companies which are currently operating on the Japanese binary options market. The figure is 26 percent lower when compared to the month of March. Volatility on the local currency market has remained stagnant and this surely has had an impact on volumes.

Any correlations between foreign Exchange volatility and volumes are virtually non-existent. A year ago, in a similar volatility construct, trading volumes figures were almost three times higher. At the time, our reporters speculated that since there was little volatility in FX, some traders could have made a switch to trading binary options.

This year we are not seeing anything remotely resembling last year’s phenomenal spike in April as volatility in the Japanese yen is dormant once more. The other figure that suggests a continuing stagnation of the market is the number of active trading accounts which barely moved in April. The figure increased 2% month-on-month to 14,515 and 20% year-on-year.

The 20% increase in the number of active accounts remains a non-factor when we look at the overall trading volumes which were close to ¥118 trillion last April.

Trading activity was focused mainly on the Japanese yen crosses and the EUR/USD in April. Activity in the GBP/JPY has also been substantial, in the run up to the elections in May.

Japan-Binary_April-Volumes
About the Author: Victor Golovtchenko
Victor Golovtchenko
  • 3424 Articles
  • 22 Followers
About the Author: Victor Golovtchenko
Victor Golovtchenko: Key voice in crypto and FX, providing cutting-edge market analysis.
  • 3424 Articles
  • 22 Followers

More from the Author

Binary Options

!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}