FFAJ Reports Mixed FX Trading Volumes in Q3 of 2018

Trading volume for domestic FX futures dropped quarter-on-quarter, but overseas volumes were up.

The Financial Futures Association of Japan (FFAJ) has published its third-quarter report for its 2018 fiscal year on the financial futures transactions in the country this Thursday. During the period, trading volumes for both foreign exchange (forex) and interest rate contracts were mixed.

The data for the third quarter, which spans from October of 2018 until December, is based on the trading volumes of trading venue members of the FFAJ, a self-regulatory body established in 1989 to govern the Japanese futures market.

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As of December 31, 2018, there were 141 total members of the regulator. However, only the trading volumes of 125 companies were included. This is one more firm than September 30, 2018.

Starting off with trading volume by instrument, the number of on-exchange foreign exchange domestic futures contracts traded during the third quarter was slightly less than 8.7 million. When measured against the previous quarter, when more than 9.3 million contracts were traded, this is less by 6.68 percent.

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Overseas FX Volumes for FFAJ Members Holds Ground in Q3

However, when looking at the same contracts, but for overseas FX, the volumes looked stronger. Specifically, the number of contracts traded during Q3 was 139,608. This represents an increase of 8.98 percent when compared with the second quarter of 2018.

For over-the-counter (OTC) contracts, the value of domestic FX futures contracts traded in the quarter was ¥9.43 trillion ($85.12 billion). This represents an increase of 7.52 percent on a quarterly comparison.

For Margin FX, the number of domestic contracts traded on-exchange was 6.68 percent less than the previous quarter, coming in at 8.7 million. The traded value of OTC Margin FX contracts during Q3 was ¥9.42, which is 7.53 percent higher quarter-on-quarter.

Domestic OTC FX options in the third quarter of 2018 also experienced a drop, falling by 4.75 percent from ¥93.03 billion in the second quarter to ¥88.61 billion in Q3.

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