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Screenshot of a breaking news alert e-mail from Q2 2017
Japan’s evergreen retail FX industry is continuing to flourish, marked by the announcement today by Tokyo Financial Exchange (TFX) that exchange-traded Click365 margin FX volume accelerated by a stellar 38.3% in June compared to the previous month.
The total trading volume of Click365 exchange-traded FX Margin contracts in June, was 3,822,266 compared with 2,764,360 contracts in May this year, a figure which was 0.9% lower than in April 2015.
Japan’s faithful domestic customer base is notoriously conservative, yet the region continues to produce between 30% and 40% of global FX order flow. Recent volatility in other markets has recently revived industry and regulatory discussions surrounding the driving of FX trading onto exchanges, thus the upturn in interest among domestic customers for Japan’s Click365 contracts reflects this line of thinking accurately.
Average daily trading volume amounted to 173,741 Click365 contracts, compared to 135,659 in May, representing a 28% increase compared to the previous month.
The total trading volume of Exchange Equity Index Margin contracts (Click kabu 365) in June was 683,373, a 9.5% increase compared with May this year, whilst average daily trading volume in Exchange Equity Index Margin contract stood at 31,063.
In terms of currency pairs, the EURUSD pair has fallen out of favor with Japanese investors, with a 31.5% drop compared to the previous month. Last year, there was very little activity whatsoever with regard to exchange traded EURUSD pair in Japan, as June 2015 heralds a 419% increment compared to June 2014, however when considering that Japanese investors have expressed high confidence in the US dollar for the year ahead, this downturn on a monthly basis indicates investor uncertainty surrounding the Euro, with notoriously cautious Japanese traders holding off during the Greek crisis.
For the official announcement from Tokyo Stock Exchange, click here.