Doesn’t time fly by? Simply yesterday it was New 12 months and now it’s already the start of February. And with the beginning of a brand new month comes an inflow of brokers’ buying and selling quantity studies. This Monday, it was Saxo Financial institution, the Danish brokerage agency, that launched buying and selling volumes for the primary month of the 12 months.
By and enormous these studies don’t make for significantly thrilling studying. However on this event that’s not the case. That’s as a result of the agency noticed noteworthy declines, throughout the board, in buying and selling volumes.
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Most significantly, the agency noticed a fourth consecutive decline in overseas trade buying and selling volumes. For January, the Danish dealer reported a each day buying and selling common within the FX markets of $6.9 billion.
This was the bottom each day common buying and selling quantity that Saxo Financial institution has reported, for the FX market, since no less than the start of 2016.
One can see a gradual decline over the previous six months within the dealer’s FX buying and selling volumes. Actually, aside from August and September, the place volumes remained nearly the identical, common each day FX volumes have shrunk repeatedly for the dealer.
Saxo Financial institution – not simply FX in decline
Equally, commodities buying and selling reached a quantity of $18.7 billion final month. That was its lowest since September and, for the 6 months previous to this January, Saxo Financial institution’s shoppers averaged $21.four billion in commodities buying and selling.
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The identical was true of equities buying and selling, though right here the decline in volumes was barely extra pronounced. Final month, Saxo Financial institution noticed $50.5 billion in equities buying and selling.
That was a steep decline on the $81.2 billion that the Danish dealer recorded in January of final 12 months. It was additionally considerably lower than the $64.7 billion month-to-month common that the agency reported within the second half of 2018.
All of this appears prone to be related to the introduction of the European Securities and Markets Authority’s product intervention measures. These guidelines, which had been carried out in August, put caps on the quantity of leverage brokers can supply merchants. Thus, it’s not significantly shocking to see volumes decline for Saxo Financial institution, simply as they’ve declined for different brokers in the identical interval.