The Tokyo Financial Exchange reported that volumes rose to 3,652,629 contracts for its Click 365 FX division. The figures were 12.2% higher than September’s figures but 64.8% below October 2011. While the figures showed improvement, FX trading in the TFX continues to be dwarfed by overall OTC trading in Japan. The figures though track the overall improvement in Japanese volumes that was witnessed in GMO Click Securities volume report.
In an interview with Forex Magnates for our 3rd Quarter Forex Report on the FX Futures market, a representative from the exchange responded that the drop in volumes was due to a lack of volatility this year in Japanese yen. It was also added that last year’s trading was unusually active due to the yen’s historical highs which it achieved. Japanese brokers that offer both OTC and Exchange FX have also cited the drop in exchange traded products due to a change in laws where both products are now being taxed equally. Also contributing to rise in OTC versus Exchange FX is that both products are typically offered by Japan’s forex brokers. As such, with companies citing higher margins in their OTC business, that segment is more heavily marketed to its customers.
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