Kabu Posts Monthly Gain in FX OTC Trading for July

FX trading volume climbed by 10 percent month-over-month and 95 percent year-over-year.

Japanese brokerage giant, Kabu, has managed to report strong trading metrics for foreign exchange (forex) for the month of July, while stock demand plummeted. The broker witnessed a healthy jump in the over-the-counter (OTC) trading demand with forex instruments.

The officially published figures on Tuesday revealed that the total trading volume with OTC forex instruments was 41.6 trillion yen. This figure went up by 10 percent when compared with the same metric of the previous month.

On a year-over-year basis, the trading demand went up further. The trading venue reported an OTC FX trading volume of 21.3 trillion yen in July 2020, meaning the latest numbers jumped by more than 95 percent on a yearly basis. Similar trends can be seen across the trading industry as other global platforms are witnessing astronomical yearly jumps.

Despite the surge in FX demand in July, the number still remains much lower than the peak achieved last March, with a total monthly OTC FX trading volume at almost 55 trillion yen.

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Other than OTC trading, demand for forex derivatives is rising in Japan. Click 365, the FX derivatives platform operated by the Tokyo Financial Exchange (TFX), recently reported a 6.6 percent yearly uptick in its trading demand for FX derivatives.

Non-FX Trading Plummeted

However, monthly trading with stocks on Kabu slumped by more than 16 percent. In absolute terms, the trading volume with stocks in July came in at 21.29 trillion yen, which is down from the previous month’s 25.59 trillion yen. On a yearly basis too, stock trading dipped by 10 percent.

Furthermore, there was a slow down in the intake of new traders on the Japanese platform as it only opened 9,929 new securities accounts last month, taking the total tally to 1,315,193.

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