GMO Click’s Volumes Stagnate in November, Continue to Underperform in 2017

The group's FXNeo platform has been unable to see a sustained growth in volumes in 2017.

GMO Click has reported its latest tranche of monthly trading volumes for the month ending November 2017. The figures reflect a slight improvement relative to last month, though largely signal a more subdued period for trading volumes in Japan, on par with other domestic brokerages.

FX volatility was in short supply for much of the month, as it did not materially affect trading volumes in Japan. This was seen across other brokerages in the country, with both Monex and Kabu also seeing flattened FX volumes during November 2017.

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Indeed, GMO Click posted a slight rebound in its trading activity on the company’s FXNeo platform in November 2017. Since bottoming out at a multi-year low of ¥66.2 trillion ($588 billion) back in July, FXNeo has seen oscillating volumes, contingent on pockets of volatility in Japan.

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The latest reading came in at ¥75.2 trillion ($668 billion) in November 2017, rising by a factor of 2.9 percent on a month-over-month basis from ¥73.1 trillion ($650 billion) in October 2017. Another culprit for the lack of volumes growth in November has been the muted activity of the USD/JPY, which has yet to break out of a narrow trading range for much of the month.

Lagging behind 2016

Relative to 2016, GMO Click’s retail trading volumes did incur a decline of 43.0 percent when measured against ¥132.5 trillion ($1.17 trillion) in November 2016. The decline can be attributed to the influx of volatility associated with the 2016 elections in the United States, which saw the surprise electoral victory of Donald Trump send shockwaves through FX markets.

On the whole, GMO Click’s FXNeo platform has notably underperformed in 2017 relative to the year prior, with volatility being the primary reason. Isolated pockets of trading activity continue to define the year, though volumes have lagged behind on a yearly basis in almost every month in 2017.

However, GMO Click’s Click 365 exchange traded product did register a monthly increase in the total volume of contracts traded. The figure stood at 464,386 contracts, which is the highest figure since January 2017. The reading was also higher by 16.4 percent on a monthly basis in November 2017 from just 399,093 contracts back in October 2017.

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