Monex Group Reports a MoM Decline in October Trading Volumes

October figures indicate a decrease in DARTS bringing Monex back onto a downward trend.

Monex Group today reported its October 2016 business metrics revealing a downturn in this month’s financial metrics compared with September’s improved figures.

In terms of Daily Average Revenue Trades (DARTs), last month saw the Japanese broker’s figures increase to 251,188 in an upbeat trend that was seen across the industry during September. However, October has seen varying results across the industry which in the main have not mirrored September’s positive data.

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October Metrics

Today’s figures reveal that DARTS for the month are 236,895 representing a decrease of -5.7 percent MoM compared with September’s 251,188. Today’s metrics also show an annual decrease of -14.4 percent compared with October 2015’s figures of 276,879.

October saw a slight increase in accounts at Monex rising to 1,668,473 from 1,663,648 accounts in September 2016, or a marginal increase of 0.29 percent MoM. Looking at Monex’s FX business, the number of over-the-counter (OTC) FX accounts totalled 231,540 showing a slight increase over September’s figures of 230,118, or 0.62  percent MoM.

Staying on the broker’s FX OTC business, Monex recorded an average trade value per business day of ¥95,543 billion ($9.27 billion) compared with ¥123,767 billion ($12.9 billion) in September, or a decrease of -22.8 percent MoM.

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TradeStation also saw DARTs decrease to 94,307 in October from 103,752 in September, reflecting a fall of -9.1 percent MoM. In terms of active account numbers, October figures were 61,732 compared with 61,815 in September, or a marginal decrease of -0.13 percent MoM.

Operating Revenues

Monex last week announced its preliminary quarterly consolidated financial results for the first half of the fiscal year ending 31 March 2017 (1 April – 30 September, 2016), revealing a notable decline in both revenues and profits.

For H1 2016, Monex’s results showed a total operating revenue of $211.6 million (¥22.1 billion), compared with $276.7 million (¥28.9 billion) or a decline of -23.9 percent compared with the same period last year.

Monex’s H1 2016 profits also took a massive hit at $957,689,000 (¥100 billion), compared with last year’s $50.6 million (¥5.3 billion) or a decrease of -98.1 percent.

Overall, Monex’s trading volumes have declined substantially compared to the previous year, partly due to the sale of its US and Australian FX business to OANDA. The brokerage also reduced the headcount of its US centered TradeStation unit, in response to declining trading volumes in the US market. Today’s figures delivers further dismal news for the Japanese brokerage.

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