Invast Securities Sees MoM Drop in Business Metrics in July

Invast Securities Co., Ltd has published business metrics for the month of July today. Unsurprisingly, the online securities brokerage reported a drop across its two main metrics: operating revenue and total amount of deposited margin.

In particular, operating revenue for the Japanese brokerage was ¥386 million for the month of July. This is a decrease on the ¥439 operating revenue recorded in June of 12.1 per cent. However, year on year operating revenue has improved by 2.4 per cent.

Although lower than June, July’s operating revenue is still more robust than that achieved in April and May of this year. In fact, July’s operating revenue is the third-strongest this year, behind March and then June.

Deposited Margin down on Invast Securities

The total amount of deposited margin posted by Invast Securities for July was ¥71.55 billion. This translates to a fall of 0.87 per cent against June’s deposited margin of ¥72.18 billion. However, compared to July 2019, last month’s deposited margin declined by 12.6 per cent.

Brokers across the world have witnessed a surge in trading activity, driven by heightened Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term in response to the Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term pandemic. This volatility ramped up towards the end of February and peaked in March.

During the third month of the year, many trading providers reported record trading volumes, trading activity and other associated metrics. Since then, volumes have been steadily declining as volatility tapers off.

June Spike in Volumes Appears Short-Lived

However, as Finance Magnates reported, the month of June provided an unexpected boost for many trading providers. Typically, the summer months in the northern hemisphere produce lacklustre trading volumes as traders go away on vacation.

Increasing COVID-19 cases and people being trapped in lockdown and unable to travel seemed to provide a welcome boost to declining trading volumes in June. Nonetheless, it seems the spike was short-lived, as many brokers have once again reported drops in trading volumes.