TFX Volumes Continue to Fall in May from March Highs

As COVID-19 volatility lessens, trading volumes are falling for trading providers.

The Tokyo Financial Exchange (TFX) has published its trading volumes for the month of May this Monday, showing that trading volumes continue to decline as market volatility lessens.

As Finance Magnates reported, the Japanese exchange posted massive trading volumes in the month of March, boosted by market volatility fuelled by the coronavirus pandemic. However, since March’s high, volumes have since been on the decline, falling in April on a monthly comparison, and now again in May.

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Specifically, during the month of May, TFX recorded a combined trading volume for all of its products of 3,361,729 contracts, with an average daily trading volume of 160,273 contracts. Measuring this performance against the previous month, trading activity is lower by 13.9 percent. Overall, however, trading is still strong by 6.8 percent on a yearly comparison.

Taking a look at foreign exchange (forex) trading, the total trading volume of FX Daily Futures contracts, through Click 365, was 2,288,868, with an average daily trading volume of 108,991 in May. 

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According to the data provided by the exchange, May’s trading volume has dropped by 8.1 percent when measured against April. However, volumes are still higher year-on-year, increasing by 4.1 percent.

In May, the US dollar/Japanese yen trading pair noted the biggest monthly drop in trading volumes, falling by 32.2 percent from April’s trading volume, to reach 382,184 contracts traded in May. This is also lower by 17.2 percent against the same period of the previous year.

GBP/USD trading soars on TFX

However, the British pound/US dollar pair, often referred to as the cable, achieved a solid performance during the month, with a total trading volume of 63,690 contracts. Against April, trading rose by 24.7 percent – the strongest monthly gain. Not only that, but the currency pair also reported the strongest yearly uptick in trading volumes, soaring by 138.1 percent year-on-year.

In May, the total trading volume of Equity Index Daily Futures contracts (Click kabu 365) was 1,054,886 contracts. This represents a decline of 24.1 percent month-on-month, but it is still stronger against May of 2019 by 16.4 percent.

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