Another of Japan’s online trading giants is reporting disappointing results in terms of FX volumes for the month of October 2015. DMM.com Securities has just released to Finance Magnates its latest monthly metrics, showing a very weak performance in line with earlier reports from the Japanese industry.
As for the actual numbers, the broker reports that during the month its clients traded a total of just $620.2 billion (75.054 trillion yen). To put this figure in perspective, we can compare it with October 2014’s FX volume at DMM which was $839.5- this signifies a drop of about 26.1% year over year.
Due to its massive size, DMM’s results are indicative of the performance of the entire Japanese online trading market, and they are very bleak indeed. October showed a fall of over half of the volume at DMM since its peak at $1316.20 billion in January 2015 – in total a drop of 52.9% in less than a year.
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Last week, two other Japanese online brokerage giants revealed that October was the weakest period so far this year in terms of their FX trading volumes. Both GMO CLICK and Monex Group suffered painful drops in volumes, compared not only to October 2014 but to the already poor performance of September 2015 as well.
For the same period, brokers and exchanges from around the world reported FX volumes that were mostly positive, or at least showed mixed results, which indicates that the problem is due to a local issue with the Japanese market. It seems the local brokers in the biggest FX market in the world desperately need JPY pairs to increase in volatility in order to get clients excited and trading again.