The retail broker’s historic June performance looks to have funded an aggressive expansion plan to conquer London markets
The world’s largest retail broker has recently reported a record breaking $1.104trn in monthly volumes, representing a 16.7 percent gain on the May and surpassing the landmark $1trn sum. The firm’s historic gains are in large part due to favourable market conditions and have prompted the Japanese forex giant to expand its operations further afield.
Commenting on the company’s London expansion, Tomitaka Ishimura, Director of GMO CLICK said: “London is the obvious choice for the next phase of GMO CLICK’s global expansion because of it’s position as a major international financial centre for Forex trading.”
The company will, on the project’s completion, become the second Japanese forex broker to base its operations in London. “We plan to aggressively market to a UK and European client base. Clients will be offered our best trading terms and will be able to trade on our in-house developed platform which has already proven to be extremely successful in Japan and is being modified for use in UK and European markets.
“In addition, we will use our status as a UK regulated firm to attract a global audience from developing nations such as China and Russia”, added Ishimura.
The company will hope to extend its gains ahead of it’s impressive June results with London being home to the vast majority of forex transactions, currently accounting for 36 percent of the market’s turnover.
The company’s gains were widely anticipated by analysts following the Tokyo Financial Exchange’s (TFE) substantial volume gains in the same period – the figures being especially impressive in that June has fewer business days than May. June contains 20 days of trading, as opposed to May’s 23, and boasted an average daily volume of $55.18bn in June, a 34.2 percent increase on the previous month’s $41.1bn equivalent.
GMO CLICK Securities is one of many Japanese organisations to have benefitted from the yen’s recent volatility, the currency having weakened over 25 percent against the dollar since last October. The Bank of Japan’s aggressive monetary stimulus programmes have generally benefitted the nation’s financial industry – with the TFE’s monthly volumes averaging at $885.9bn for the first half of 2013.
Click 365 however has suffered against OTC trading following last year’s removal of tax incentives which formerly favoured the platform – with Click 365 trades amounting to $10.57bn worth of daily activity, far short of OTC’s £1.093trn.
Japan remains the foremost region for retail foreign exchange trading, regardless of the domestic market having endured increasing regulatory requirements since August 2010. Although the regulations were originally anticipated to hinder forex trading, the yen’s volatility has entirely offset any such obstacles to the market’s fruition.