20-08-2015 7-13-21 AM
Image from bocrunch.com

Summer is known to be a “market cooldown” in Japan. It’s a time of the year when less growth is expected in the number of accounts and trading volumes of binary options. Surprisingly, this July 2015, Financial Futures Association of Japan (FFAJ) published a significant data on Japanese binary options market. July showed to be 10.5% higher compared to the previous month (June).

For July, the trading volume spiked to more than ¥48 billion ($392 million) which includes all 8 Japanese companies that now operates the country’s binary option market. Compared to June, July has reached 323,236 more accounts which is 0.92% higher compared to its preceding month. Active accounts have also grown with additional 542 more accounts compared to June. If you look at these figures, you can tell that there is definitely a promising growth in Japan’s trading market this summer.

However, the story does not end here. If you get a closer look to the country’s binary option statistics, you will discover that this is not that good at all. Though in July 2015, binary trading options reached ¥48 billion, we can’t discredit the fact that April 2014’s figure is much higher- over ¥117.5 billion. Though the existing account this year grew, this did not surpass the number obtained last year.

Looking at the statistics, we can say that trading volume done per client collided compared to last year’s statistics. Could this have something to do with Japan’s regulated binary option business? These days, a minimum expiration time (2 hours) is offered by Japanese authorities’ apart from the “ladder option structure”.  The latter gives client the preference to select a predefined expiry date rather than the market price.

The 2 hours minimum expiration time is designed to make binary options more professional. Japanese authorities are trying to do away with types of preferences offering shorter expiration time. To them, this only entices binary options clients to depend on luck. However, this poses the tendency for clients to turn to illegal and unlicensed brokers who still offer short term options nowadays.

Meanwhile, Financial Futures Association of Japan also published July’s OTC retail forex volumes data. It appeared that volumes of Japanese FX trading yield to ¥48 trillion in July 2015, which is lower compared to June 2014 which is ¥530 trillion.

These statistics can be alarming to Japan’s trading market, especially considering the fact that this country is considered to among the biggest binary options markets in the world.