Tokyo Financial Exchange Announces December Results. Click365 Volumes 31.4% Down YoY

Tokyo Financial Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (TFX) has today announced its full results for the December 2013, a month during which the number of exchange-traded FX Margin contracts (Click 365) amounted to 2,798,007, which represents an increase of 11.8% compared to November 2013, however, a downturn of 31.4% was suffered when compared to December 2012, which is rather unusual considering the generally low trading volumes experienced by a majority of industry participants last year.

The average daily trading volume (ADV) achieved from Click365 order flow was 127,186 for December. Such diminished figures are no doubt a point of interest for Invast Securities, which is set to acquire 120,000 FX accounts on Click365 as part of an absorption-type agreement, taking effect on March 2 this year.

At the time of announcement, Invast Securities President, Takeshi Kawaji detailed to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates that only $1,000 changed hands in order to set such an agreement into effect.

Reversal Of Industry Trend - Overall Decrease In Year-on-Year Figures

An interesting set of results were produced by TFX during December 2013, in the respect that whilst the majority of the figures reflect a steady increase in volumes when compared with November's results, a dramatic difference is apparent when comparing the results for December 2013 with the same period last year.

Despite OTC trading activity in Japan having reached epic and unprecedented levels for a sustained period during 2013, with GMO Click Securities and DMM Securities having posted monthly results of over $1 trillion each on more than one occasion during the summer, it is evident that exchange-based trading activity is on the wane by comparison.

Indeed, the only currency pair for which trading volume was higher in December 2013 compared to December 2012 was USD/JPY, for which a 22% increase made itself present.

Aside from that specific pair, the entirety of the other pairs traded on the exchange showed a significant decrease, esepcially the EUR/JPY pair, for which trading volume was 69.3% weaker than that of December 2012.

Comparative to November 2013, the EUR/JPY pair also attracted less trading volume, with a 9.1% decrease having been experienced.

Futures Takes A Nosedive

The trading volume of three-month EUR/JPY futures in December was 334,588, accounting for an ADV of 16,729 which is down 28.9% when compared with November's results, and represents a decrease of 1.1% compared with December 2012.

Whilst a marked difference has been experienced at TFX compared to other venues, and a stark contrast compared to compatriot OTC FX firms is apparent, the figures demonstrated here go more than a degree further to emphasize Japan's penchant for OTC FX.