Kabu Posts Monthly Gain in FX OTC Trading for July

Japanese brokerage giant, Kabu, has managed to report strong trading metrics for foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) for the month of July, while stock demand plummeted. The broker witnessed a healthy jump in the over-the-counter (OTC) trading demand with forex instruments.

The officially published figures on Tuesday revealed that the total trading volume with OTC forex instruments was 41.6 trillion yen. This figure went up by 10 percent when compared with the same metric of the previous month.

On a year-over-year basis, the trading demand went up further. The trading venue reported an OTC FX trading volume of 21.3 trillion yen in July 2020, meaning the latest numbers jumped by more than 95 percent on a yearly basis. Similar trends can be seen across the trading industry as other global platforms are witnessing astronomical yearly jumps.

Despite the surge in FX demand in July, the number still remains much lower than the peak achieved last March, with a total monthly OTC FX trading volume at almost 55 trillion yen.

Other than OTC trading, demand for forex derivatives is rising in Japan. Click 365, the FX derivatives platform operated by the Tokyo Financial Exchange (TFX), recently reported a 6.6 percent yearly uptick in its trading demand for FX derivatives.

Non-FX Trading Plummeted

However, monthly trading with stocks on Kabu slumped by more than 16 percent. In absolute terms, the trading volume with stocks in July came in at 21.29 trillion yen, which is down from the previous month’s 25.59 trillion yen. On a yearly basis too, stock trading dipped by 10 percent.

Furthermore, there was a slow down in the intake of new traders on the Japanese platform as it only opened 9,929 new securities accounts last month, taking the total tally to 1,315,193.