FX Demand on Kabu Slows Down in June

Kabu, a major Japanese online brokerage, released its monthly trading metrics for June 2021. The figures show a monthly slump in foreign 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 (FX) trading demand, while activities with stocks picked up.

According to the reported numbers, monthly trading volume with over-the-counter (OTC) 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 instruments for June came in at ¥37 trillion, declining more than 12 percent from the previous month.

The consistent fall in forex demand can be seen since the jump in volume in March when the platform reported a record ¥55 trillion in trading volume. But, the latest number remains higher than the market demand in January and February. June had 22 trading days which might have pushed the monthly demand a bit higher.

However, comparing year-on-year depicts a different picture. Kabu reported only ¥28 trillion in FX trading volume in June 2020, meaning there has been a jump of over 32 percent in trading demand after a year.

While Kabu saw a monthly dip in FX demand, other platforms, both Japanese and international, reported the opposite. Click365, which is operated by the Tokyo Financial Exchange (TFX), witnessed an 11.6 percent rise in FX futures contracts trading volume, while FXSpotStream’s average daily volume increased by 3.7 percent.

Equities Demand Is Picking Up

Coming to equities, the monthly trading volume with stocks recovered to ¥25.5 trillion, which is up from the previous month’s ¥21 trillion. This demand was pushed by the 13,700 new accounts opened with the brokerage last month. Kabu ended June with a total of 1,305,947 securities accounts.

Furthermore, the Japanese brokerage posted that it ended last month with assets under custody worth ¥26 trillion and ¥2.5 trillion in credit balance.