After the Tokyo Financial Exchange reported volume gains for June, we were anticipating GMO Click Securities figures. The world’s largest retail broker by volume didn’t disappoint as it has announced a record $1.104 trillion in total month volume for June, a 16.7% MoM increase. The breakout number becomes the third straight month of record volume for GMO Click. The figures are even more impressive when factoring in that June contained only 20 business days of trading, as opposed to 23 in May. As a result, June’s $55.18 billion average daily volume showed 34.2% growth from May’s $41.1 billion figure. For the first half of 2013, average monthly volumes were $885.9 billion. As seen by today’s figures, GMO Click, along with the rest of the Japanese industry continues to benefit from increased volatility in the yen as the currency has been heavily active since the Bank of Japan initiated its aggressive monetary stimulus policies late last year. As a result, the yen has weakened over 25% against the US dollar since last October.
Breaking down the total volumes, OTC FX contributed $1.093 trillion in activity, versus only $10.57 billion of Click 365 trading. Exchange based Click 365 volume growth continues to lag OTC trading in Japan, as tax incentives that favored the product were removed last year. As a result, currently both OTC and Click 365 FX trading are taxed at similar rates.
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Looking ahead, Forex Magnates will be timely holding its upcoming Tokyo Summit in two weeks. The event will feature 600 top executives from Japan and the rest of world. In addition to event providing an opportunity to hear from local brokers their opinion on the current stellar market conditions, topics of discussion at the Summit will include panels in regards to liquidity, opportunities in China, and overall foreign expansion. With regards to GMO Click, the firm recently has registered to become licensed in the UK will the goal of opening a London office as part of its foreign expansion plans.