Apparently I was a little too quick with the call they we wouldn’t be seeing record volume numbers from Japan this month. Following a 20% drop in trading at the Tokyo Financial Exchange (TFX), expectations were for at least a small drop in FX activity taking place at Japanese brokers. Contrary to the TFX’s figures, GMO Click Securities, the world’s largest retail FX broker by volume has announced all-time record trading figures for May. During the month, total volumes were $945.2 billion, a 1.8% increase from the previous record set in April. Volumes in Japan continue to be assisted by aggressive monetary easing take place in the country.
Interestingly, the entire increase in volumes came from the broker’s OTC products as volumes rose to $934.9 billion from $913.7 billion the previous month. Tracking the decline of the TFX, trading of exchange traded Click 365 contracts at GMO declined 28.8% to $10.27 billion from $14.38 billion in April.
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Led by policies of Prime Minister Shinzo Abe, and nicknamed ‘Abeonomics’, the stimulus policies are meant to increase inflation and weaken the yen. While global economists debate the long term effects of Abeonomics, the actions are have been welcomed by the local FX industry.