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Summer in Session as Japanese Volumes and Volatility Declines at the TFX

by Ron Finberg
  • The Tokyo Financial Exchange (TFX) has reported August volumes. In its FX Click 365 division, overall volumes were 3,315,541 contracts, or 150,870 on a daily average, 18% below July's figures, and well below year highs.
Summer in Session as Japanese Volumes and Volatility Declines at the TFX
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The Tokyo Financial Exchange (TFX) has reported August volumes. In its FX Click 365 division, overall volumes were 3,315,541 contracts, or 150,870 on a daily average. The figures were 18.8% below July’s numbers, and more than 50% below year highs achieved in February and April. The monthly decline follows a 30% drop that occurred in July. The contraction in volume was seen along all Japanese yen crosses, as the Volatility in the currency continues to be tapered following an active first half of the year. Among individual crosses, trading in the USDJPY continues to be the most active contract, composing 44% of overall volumes, while the AUDJPY and EURJPY were a distant second and third respectively.

While a decline at the TFX is not always an indicator for weakness in the overall Japanese market, the drop in Japanese yen volatility, along with the typical summer slowdown, does suggest we will see brokers release lower volumes. Later this week, we expect GMO Click, the world’s largest retail broker by volume, as well as the CME to release their August figures.

Tokyo Financial Exchang (TFX) Monthly Contracts Traded in Thousands

Tokyo Financial Exchang (TFX) Monthly Contracts Traded in Thousands

The Tokyo Financial Exchange (TFX) has reported August volumes. In its FX Click 365 division, overall volumes were 3,315,541 contracts, or 150,870 on a daily average. The figures were 18.8% below July’s numbers, and more than 50% below year highs achieved in February and April. The monthly decline follows a 30% drop that occurred in July. The contraction in volume was seen along all Japanese yen crosses, as the Volatility in the currency continues to be tapered following an active first half of the year. Among individual crosses, trading in the USDJPY continues to be the most active contract, composing 44% of overall volumes, while the AUDJPY and EURJPY were a distant second and third respectively.

While a decline at the TFX is not always an indicator for weakness in the overall Japanese market, the drop in Japanese yen volatility, along with the typical summer slowdown, does suggest we will see brokers release lower volumes. Later this week, we expect GMO Click, the world’s largest retail broker by volume, as well as the CME to release their August figures.

Tokyo Financial Exchang (TFX) Monthly Contracts Traded in Thousands

Tokyo Financial Exchang (TFX) Monthly Contracts Traded in Thousands

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