According to data announced by the world’s biggest brokerage by volume, the Japanese powerhouse, GMO Click, has registered a marked decline in trading volumes in May. The figure was reported at just above one trillion Japanese yen ($8.3 billion) last month, which is lower by about 11 percent when compared to the previous month.
The figure remains a whopping 89 percent higher when compared to a year ago, showing the continuing strength of GMO Click in the Japanese industry. The monthly decline is mostly due to seasonal factors as Japanese holidays have materially affected the number of trading days in May. There were a total of 18 trading days in May when compared to 21 in April.
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The value of exchange traded contracts during the month increased by 4.3 percent in May to ¥526 billon ($4.23 billion).
The biggest contributor to the year-on-year growth number is the continuing decline in the Japanese yen. During the month of May the USD/JPY registered a new multi-year high, above 124 Japanese yen per dollar amid speculation that the Bank of Japan would unveil additional asset purchases later this year, while the Federal Reserve moves to tighten rates.
We could yet see increased trading activity from Japanese traders in the coming months, however if history is any guide, the summer months lull is likely to take over first. Over the past years trading activity globally has been much slower in July and August due to lower volatility. Institutional players tend to avoid making big bets in the third quarter which constrains moves and trading volumes.