Summer C-Level Series: Timothy McDermott, Nadex
What have been the main themes of your business so far this year?
We have taken note of a couple of key themes in our business, specifically around the growth in number of market participants and volume. We attribute these results to a variety of factors: (1) Nadex’s commitment of continuing to improve our offering with better trading platforms and tools, including expanded mobile options, such as our recent tablet application launch; (2) Our team’s dedication to the market and the members of The Exchange, which is demonstrated by the educational programs put in place focused on developing retail investors’ understanding of binary options; and (3) Nadex’s efforts to improve market depth and liquidity with additional market makers.
What has surprised you in 2014?
I have been surprised by the depth and duration of low volatility that the underlying FX and equity index futures markets have seen in 2014.I felt we would have seen more volatility earlier in the year as the Fed pulled back.
What are your expectations for the duration of 2014?
More recently, we have started to see a bit of an increase in volatility in the underlying markets. Looking ahead to the remainder of 2014, I think we will see a number of the retail traders in the U.S. who have been sitting on the sidelines for the past several years return to the markets — not just Nadex’s markets, but generally. Of course, if this does occur it should help our growth efforts, as well.