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 per cent. Overall, however, trading is still strong by 6.8 per cent 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.
According to the data provided by the exchange, May’s trading volume has dropped by 8.1 per cent when measured against April. However, volumes are still higher year-on-year, increasing by 4.1 per cent.
In May, the US dollar/Japanese yen trading pair noted the biggest monthly drop in trading volumes, falling by 32.2 per cent from April’s trading volume, to reach 382,184 contracts traded in May. This is also lower by 17.2 per cent 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 per cent – the strongest monthly gain. Not only that, but the currency pair also reported the strongest yearly uptick in trading volumes, soaring by 138.1 per cent 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 per cent month-on-month, but it is still stronger against May of 2019 by 16.4 per cent.
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