TOCOM’s August Trading Volume See Sizable Decline MoM

The decline in TOCOM's August volumes was affected by waning metals contracts, specifically with gold and platinum.

The Tokyo Commodity Exchange, Inc., (TOCOM) one of Japan’s largest and most widely utilized futures and commodities exchanges, has reported its turnover and volume for the month ending August 2016, which saw a consecutive decline of its figures MoM, with the majority of the weakness being seen across its commodities business, according to a TOCOM statement.

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During August 2016, TOCOM saw a monthly volume of customer trades (which combines both the buy- and sell-sides) of only 1.95 million contracts, falling -20.1% MoM from 2.44 million contracts set back in July 2016.

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Looking at its average daily volume (ADV), TOCOM’s August 2016 trading yielded 88,802 contracts per day, relative to 122,163 contracts per day in July 2016, or -27.3% MoM. Over a yearly basis August 2016’s contracts volume was also lower by a margin of -22.5% YoY from August 2015.

The largest declines MoM were seen across TOCOM’s gold and platinum contracts, which fell 39.6% and 33.5% MoM respectively. One of the primary culprits for this has been a rather tight band of consolidation that both metals have traded in, having since broken out and moved higher.

The overall performance of TOCOM is largely on a par with the rest of the industry, which in general had seen a sustained decline in volumes off of a June 2016 peak, instigated in part by Brexit volatility and fluctuations in metals, currencies, and other instruments. Many other venues, specifically those engaged in futures, have been a mixed bag in 2016 thus far, rescinding from earlier highs seen in the beginning of the calendar year.

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