Japan forex trading volumes hit 2016 low in August

Japan forex trading volumes hit 2016 low in August

- in All News, Featured News
FFAJ Japan

Japan’s over-the-counter (OTC) forex and binary options markets shrunk by double-digits in August 2016, in line with the rest of the world markets, according to the data published on Wednesday by the Financial Futures Association of Japan (FFAJ). In fact, forex volumes reached their lowest since the beginning of the year.

Since the beginning of the year, the trading volumes of forex brokers in Japan have been bouncing up and down, while those of binary options brokers have been continuously on the decline. In August, Japanese broker’s forex OTC volumes posted a drop of about 31% over the month to JPY 313.5 trillion and on-exchange forex volumes exceeded JPY 2.5 trillion, posting a decline of about 26% from the previous month. Year-on-year, OTC volumes fell by 36.2% and on-exchange ones dropped 37.5%. Both the volumes from on- and off-exchange forex trades in August were the lowest reported figures so far in 2016.

On the binary options market, brokers’ trading volumes reached a combined JPY 35.2 trillion last month. The figure represents a drop of 21.2% from the previous month 27.9% year-on-year.

Forex

Binary Options

Trading volume

Number of brokers

Trading volume

Accounts

Number of brokers

Over-The-Counter

On-Exchange

Existing

Active

Jan

532.32 trl

4.76 trl

53

62.06 bn

337,932

13,703

8

Feb

593.97 trl

4.85 trl

53

51.65 bn

339,997

13,656

8

Mar

439.89 trl

3.72trl

53

40.35 bn 341,946 12,786

8

Apr

416.41 trl

3.17trl

52

36.48 bn 343,455 12,225

8

May

365.99 trl

3.14trl

52

30.40 bn 344,396 11,880

7

June

429.31 trl

4.73trl

52

41.04 bn 346,292 12,676

7

July

454.35 trl

3.40trl

52

44.59 bn 348,508 11,873

7

Aug

313.53 trl

2.52trl

53

35.15 bn

350,123 11,194

7

The USD/JPY continued to be the most traded currency pair in Japan. Forex brokers’ combined volume from trading in the currency pair dropped by 31.3% on the month to JPY 296.6 trillion in August, while the volume of trading in binary options on the USD/JPY stood at JPY 17.3 billion, or 4% below the previous month’s value.

The majority of forex brokers that have published their August trading metrics reported very slow month. Among them are Japan’s leading brokerages Monex Group and GMO Click.

Meanwhile, the US forex markets also has shrunk, but based on another indicator – retail forex client funds deposited with US-regulated brokers. According to the latest statistics published by the US Commodity Futures Trading Commission (CFTC) last week, brokers’ combined forex client deposits stood in August at $510 million, posting an annual drop of 14.5% and a slight increase of 0.9% from the preceding month.

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