FFAJ Reports Drop in FX Trading Volumes in Q1

The Financial Futures Authority of Japan (FFAJ) today released its Q1 2017 report on financial futures transactions which includes trading volume data on retail FX and over the counter (OTC) contracts. The period of the report is from April to June 2017.

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Total trading volumes on-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 fell by 9.21 percent to 15.8 million contracts against 17.4 million contracts in the January - March quarter. Overall, on-exchange, domestic trading volume recorded a sharp decline of 16.44 percent and overseas volume gained marginally by 1.14 percent, corresponding to the January to March 2017 quarter.

Fomestic OTC volumes generated a total contract value of ¥10.30 trillion ( $93.15 billion) in Q1 2017, a fall of 21.15 percent against the previous quarter which saw ¥13.06 trillion ($118.14 billion). This figure includes margin FX data, which also declined by 21.3 percent to ¥10.24 trillion ( $92.55 billion) against the previous quarter.

Under trading volume by instruments, domestic interest rate (futures) contracts were 30.60 percent less compared to the previous term. Overseas interest rate (futures) contracts and overseas interest rate (option) transactions were 1.01 percent and 3.38 percent higher respectively. Domestic OTC FX option contracts volume increased by 17.14 percent and FX futures contract volume shrunk by 21.3 percent to ¥10.2 trillion ($92.6 billion) compared to the previous term.

Regarding open interest data, the on-exchange open interest position increased 8.91 percent to 6.9 million contracts with a maximum increase in the overseas contract of 16.84 percent compared to the previous quarter. The domestic OTC transaction open position increased marginally by 0.29 percent.

Earlier this month the FFAJ released its July report regarding binary options trading volumes and retail FX trading volumes, in which it reported a decrease in trading volumes due to low 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 across the industry.