Kabu, an online securities broker, released its trading report for June this Tuesday. The firm, which is a subsidiary of Mitsubishi UFJ Securities Holdings, reported a downturn in the equities and FX markets but an uptick in futures trading.
Before beginning an analysis of the report, it is worth noting that June and May had an equal number of trading days. As such, any discrepancies between the two months can’t be pinned on the fact that one had more trading time than the other.
In May of this year, Kabu reported that a total of ¥22.40 trillion ($200 billion) worth of stocks were traded using its services. That figure shrunk significantly in June. The report released today indicates that the firm saw approximately ¥19.83 trillion ($180 billion) worth of stocks traded via its services last month. This was equivalent to an approximately 10 percent month-on-month decrease.
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Unfortunately for Kabu, trading in the FX market also decreased significantly in June. At the end of May, the securities broker reported that it had brokered ¥2.68 trillion worth ($24.14 billion) of FX trading. Today’s report indicates that in June that number slumped to ¥2.17 trillion ($19.55 billion), an approximately 24 percent month-on-month decline.
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Things were better for Kabu in the futures market. This month the securities broker reported that approximately ¥3.20 trillion ($28.83 billion) in futures contracts were traded using its services. This was up by approximately 20 percent on May, during which the firm reported a total of ¥2.67 trillion ($24.05 billion) in futures trading.
It is difficult to ascertain what precisely led to the decline in trading for Kabu. Given that almost 4000 new users signed up to use the firm’s services, it seems unlikely that the company doesn’t have enough users.