Following back to back months of record breaking monthly volumes above $1 trillion, GMO Click, the world’s largest retail broker by volume has reported a decline in its August activity. According to the broker, during August, volumes fell 25% to $812 billion, breaking four consecutive months of rising record figures. The decline occurs as the Japanese yen was more or less range bound during the month, after an active first half of the year. Similar results were seen at the TFX, where volumes of Japanese yen crosses fell across the board.
In addition to the combination of summer trading and a decrease in volatility, a change in trading conditions may have also attributed to GMO’s decline in August volumes. According to Forex Magnates sources, the broker increased its minimum spread by 0.1 pips, which has a direct effect on scalper originated volume. As spreads in Japan are well below rates in the rest of the world it has triggered an increase of scalper related volumes. In GMO’s case, our source believes that the broker may have experienced losses from major traders; thus triggering a change in trading conditions.
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Looking ahead, with GMO Click figures falling back below $1 trillion, eyes are now on DMM Securities, Japan and the world’s second largest retail broker. The company is expected to release its August trading figures within the next few days.