FFAJ’s OTC FX Volumes Lose Ground in December, USD/JPY Trading Falls

The Financial Futures Association of Japan (FFAJ) reported its over-the-counter (OTC) retail FX margin trading figures for December 2016, ultimately seeing its recent run up in trading volumes move lower. Furthermore, USD/JPY trading was also weaker in December, per an FFAJ filing.

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In terms of its OTC currency trading volumes, the FFAJ yielded $4.0 trillion (¥452.4 trillion) in December 2016, down -14.7% MoM from $4.7 trillion (¥530.5 trillion) in November 2016, which represented one of its yearly peaks. December was devoid of any major market drivers, also suffering from seasonal declines in Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term, a sizable departure from the month prior.

Moreover, looking at specific currency pairs of note at the FFAJ, December 2016 also saw notable declines in this area, led by the USD/JPY. The group reported a volume of $3.8 trillion (¥430.0 trillion), retreating -15.3% MoM by a margin of $4.5 trillion (¥507.8 trillion).

The declines in trading volumes on a MoM basis also reflect a universal fall seen in other institutional and Retail Trading Retail Trading In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail trade Read this Term venues in December 2016. Earlier today the FFAJ also posted its binary options trading figures, which also noted a similar decline.