FFAJ Reports FX and Binary Options Trading Volumes Fall in August

August 2016 has seen a decline in volumes traded for the Japanese online OTC industry.

The Financial Futures Association of Japan (FFAJ) has released its over-the-counter (OTC) FX and binary options figures for the month ending August 2016, which saw a MoM fall in trading volume after reporting increasing figures in the preceding two months, according to FFAJ reports.

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Looking at the binary options figures, the FFAJ saw its total monthly retail trading volume come in at $344.8 (¥35.2 billion) correlating to a fall of 21 percent from $440.1 million (¥44.6 billion) in July 2016. Although July’s figures showed an improvement over the previous month’s, this month’s decline reflects the typical reduction in trading volumes we can expect to see during August.

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In terms of existing binary options accounts, the FFAJ yielded figures of 350,123 for the month of August 2016, compared with 348,508 accounts in July 2016, corresponding to a marginal gain of 0.46 percent MoM. By contrast, the group’s active accounts fell to 11,194 in August from 11,873 in July, or -5.7 percent MoM, indicating a further loss in this space for the second consecutive time since May.

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Regarding currency pairs, during August 2016 the largest gain was the GBP/USD, which increased to a volume of $346 million (¥3.5 billion) from $323 million (¥3.3 billion) in July 2016, relating to a jump of 7 percent MoM. Conversely there was a substantial decline in the GBP/JPY which fell to a volume of $479 million (¥4.89 billion) or a -58.6 percent fall against the previous month’s $1.16 billion (¥11.8 billion).

There was also a decline in the USD/JPY which fell to a volume of $170 million (¥17.3 billion) or -3.9 percent after the previous month’s noteworthy jump of 25.9 percent MoM.

The volumes for the month ending August 2016 generally show a sizable decline across the number of contracts and volumes traded by across the industry fuelled by lingering volatility after the Brexit vote which impacted on a number of currency pairs, coupled with the seasonally low trading volume lows experienced in this sector during August.

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